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No. 30,229 


J " a j[ EUROPE’S BUSINESS NEWSPAPER 

\x <Sy Saturday May 9 /Sunday May 10 1987 


TOTALLY OBJECTIVE 
CORPORATE FINANCE ADVICE 


D 8523 B 


y> 


TELEPHONE: 'VST 01-4891980 


WORLD MEWS 


BUSINESS SUMMARY 


Hart ends 


presidential 

campaign 


ABF buys 
23.7% stake 
inBerisford 


Base rates fall to 


Gary Hart yesterday pulled out 
of the race for the US Demo- 
cratic Party's Presidential 
nomination, with a bitter attack 
on the system for selec ting | 


ASSOCIATED BRITISH Foods, 
food manufacturer, paid 
£133 -2m yesterday for a 23.7 
per cent stake in UK sugar re- 
finer and commodities trader 


9 % in response 
to soaring pound 


political leaders and on the role SAW Berisford. 


BY JANET BUSH 


tbe press plays in it. 

One newspaper had claimed 
that he had an association with 


- The purchase, intended as a 
long-term inv estment, follows 


BORROWING costs fell yester- 
day to their lowest level since 


an actress, and it was teporua i£ n . op ®42 5 


the blocking in February by May 1984 as the Bank of Eng- 


that the Washington Po& was 
about to publish allegations 
about a relationship with 
another woman. Back Page 


Gang awaits sentence 

Four leaders of the Chelsea 
Mob football hooligans will be 
sentenced on Monday. Police 
infiltrated their organisation 
and they were convicted is 
London of conspiring to. plan 
fights. 


the Monopolies and Mergers land sanctioned a half point cut 
Commission of rival bids for in base lending rates to 9 per 
Berisford by Ferruzzi of Italy cent in response to a soaring 
and Britain's Tate A Lyle sugar pound. ' 

«* amid euphoria 
^*£££^12***^*’ Asn ' in British financial markets 
cola. Back Page about the Government’s strong 

EQUITIES soared in response showing ** Thursday's local 


to the local election results and 
news of a further cut in base 
rates. The FT-SE 100 Index 


elections and intensified specu- 
lation that the Prime Minister 
win announce a June election 


recorded its biggest daily rise, early next week. 

Confidence that the Govern- 


Zeebrngge ferry claim 

Townsend Tho resen 1 b still 
operating a system similar to 
that which contributed to the 
capsize of the Herald of Free 
Enterprise, the chairman of the 
disaster Inquiry said. Page 4 

S African ban quashed 

South Africa's Supreme Court 
quashed a government ban on 
foreign, funding for the United 
Democratic Front, the country's 
biggest anti-apartheid group. 
Blade up lone. Page 2 


Ordinary share 1987 (hou iy} 



ment win win a third term in 
office sent sterling surging as 
foreign funds poured into UK 
Government bonds and British 
equities and forced the Bank of 
England to allow the second cut 
in base rates in two weeks. 

On the Stock Exchange, the 
FT-SE 100 shares Index 
recorded its large/ 1 ever daily 



intervention aimed at keeping 
a cap on sterling. 

The authorities face the 
dilemma of a surging pound 
threatening the competitiveness 
of British industry but also 
falling interest rates at a time 
of rapidly expanding broad 
money supply and soaring 
domestic credit and asset prices. 

On the money market, the 
key three-month Interbank rate 
edged down below the new 9 
per cent base rate level to 
end just above 8| per cent 

Sterling closed higher in Lon- 
don against the D-Mark at 
DM 2.095. compared with 
DM 2 .995 on Thursday, but 
lower against the dollar at 
$1-8750 after $1.6795, reflecting 
tiie Bank's substantial sales of 
the pound primarily yya gainst 
the dollar. Its trade weighted 
index was ' unchanged from 
Thursda’s close at 73.6. 

On the equity market, the 


£S* Wh b£, “ M «ower rates before its usual 

opened 1} .peraent^e {SKI 


Japanese i TttTito n e olesrtag bonks elimbed 30.7 to 1658.7, also a 


enthusiastic 


the FT ordinary share index 


swiftly announced 


Despite the interest rate cut ctI E. 1° “St 


rate record. 

Strength in the gilt-edged 


MHkm htfi 1668.7 (CU9B7) 


Soviet ship attacked 

A Soviet vessel has been 
attacked in the Gulf war for the 
first time, bringing nearer the 
possibility of superpower naval 
involvement to protect shipping. 
Back Page 


jumping 48.6 to close at a record t b e b 
2,126.5 — a gain of 58 on the «mtii 
week. The FT Ordinary Index one v 
gained 30.7 to a record 1,658.7, jJJJf 
an increase on the week of 31.8. ct» 
London Stock Market, Page 12 


and what are believed to have The Bank's aggressive mes- market prompted the Bank of 
bSi rtbSLSf tofi S sage to the money market was England £ announce a new 

sterling a gains t the dollar by accompanied by heavy inter- issue of £lbn eight per cent 

theBank tfEnglanA toe pound mention on currency markets, Treasury stock 200^06 to be 
continued torise. tredingat starting In toe Far East as news sold at tender next Thursday, 
one point above the key DM3.00 ot UK local election results onl y on e day after the first 

levei^ * began to filter through. The experimental auction of gilt- 

Sterling's strength fuelled intervention continued through- edged stock. The news reduced 


continued to rise, trading at 
one point above the key DM3.00 


Israeli JefttMR If 

At least 11 people died and 40 
were wounded when Israeli jets 
attacked guerrilla bases and a . 
Palestinian refugee camp- in 
southern Lebanon. fftgeS 


an increase on tne week or si-a. Sterling's strength foelled intervention continued tnrougn- 

London Stock Market, Page 12 speculation that base rotes may out the European day. 

rav ^ n drop further still, despite dear rt appears dear that the 

s?*-? 1 SLSJpS signals from toe Bank of authorities Intend to resist 

ise at around their present $18 ^ its money market market pressure for lower 


opening gains and prices ended 
about ( point higher. 


level, Shell Transport and 
Trading chairman Peter Holmes 
told oil economists. Page 5 


operations yesterday that it did 
not want another cut. 


interest rates but there also 
seems to be a recognition that 


The Rnntr took the iwmsnai massive investment flows into 
step of ■nmMinrfwg . that it British securities via the cur- 


NEWMONT MINING of the US \ stop « announcing mat it ^ cur- 

ia selling 25 per cent of its ] would deal with the market at rency market could overwhelm 


Hugo Dixon writes: Building 
Continued on Back Page 
Base rate caution, Page 4; 
Bonn sees growth slowing; 
Page 4; Editorial Comment, 
Page 6; Money Markets, Page 
12; Lex. Back Page 


Missile cuts offered 

The US offered the Soviet 
Union a draft treaty providing 
for a 50 per cent cut in long- 
range strategic nuclear weapons 
by 1994. Page 2 


Australian gold interests for a < 
total of A$315m <£133m) in l 
what is believed to be Austra- 
lia’s largest public flotation. 
Back Pam Commodities, Page 
19 


Curbs far sold ruin 


Britain's «o*M3reA ... power 
stations are to be fitted with 
burners to reduce emission of 
gases that contribute to arid 
rain. Bade Page 


VOLVO, Swedish energy and. 
food group, is mitering the 
Japanese bus market in a joint j 
venture with Japanese trading 
house Mitsui and engineering 
group Fuji Heavy Industries, i 
Page 2 


Britain seeks inquiry over 
French aid on ferry order 


BY JAMES BUXTON IN EDINBURGH AND GEORGE GRAHAM IN PARIS 


Rethink on farmland 


The Government has toned 
down its plans to relax controls 
over development on agricul- 
tural land. Page . 4 


I ROLLS-ROYCE shares are 
expected to produce a 30p 
; premium when they Join toe 
London Stock Exchange on 
Tuesday. Page 8 


BRITAIN IS asking the Euro- seemed immineitt. It meant order, hut it began to show inte- 
pean Commission to investigate either that Brittany .Ferries was rest when last winter it lost a 
French Government financial prepared to accept a less ad van- big order for a US cruise ship 
aid to Chan tiers Navals de tageoos offer than Go van’s, or to an Italian shipyard. 


l’Atlantique in the attle to win that "toe French hove breached Yesterday 


an order from Brittany Ferries toe rules on state aid for ship- builders 


British 
it was 


BRITISH GAS is reminding 
shareholders, through press ad- 
vertisements and persona] let- 


ter a new cross-Channel ferry, building.” He was asking the disappointed ” that the order 


The yard, part of toe state- commission to ensure that toe appeared set to go to toe 


owned CGE-Alsthom group, is rid was fair. 


• -U j.a a - « »ciua™icMa «**» wr I uwucu VAin-nuuiuiu “ — “ _ . . . . _ r 

5 6IT- tt fir CHIf 8 TOP WOIH0II j texs, that the second 45p instal- 1 believed to be on the point of Go van had designed *, Jte ry yard 


French yard. When the French 


Tbe Home Office is to distrl- I men* on shares is due to.be paid j winning the order from toe in collaboration 


bute half ; a million copies of a ^ June 9. Page 8 
free booklet telling women how CATERPILLAR mi 
to defend themselves tn rlpljii 


French cross-Channel . operator French shipping 


Files bill In: Lords 


A private member’s bill to re- 
quire local councils to give 


CATERPILLAR management is 
expected to delay ter three 
months a derision on the sale 
of its Uddingston tractor plant 
near Glasgow. Page 4 


the 44 nowhere near our offer” it 1 
and said. The French Government 
to had w either gone over the 28 , 


despite. British Shipbuilders* earlier this year offered to had "either gone over the 28 
Govan yard in Glasgow offering build it at a cost of FFr 415m per cent limit or bad found 
what Is believes is a more (£41m). The co§t of building another way of putting sub- 
advantageous price and fin an- the ship in France was thought sidles into the yard.” 
rial package. to be about FFr 450m. The news that Govan appears 


advantageous price and fin an 
rial package. 


rage. 

Jacques 


Chirac, 


The news that Govan appears 


Under a recent European to have lost the order is a 


more access- to personal files 
was given an unopposed second 
reading in toe- House of Lords. 
Page 4 


ELSTREE STUDIOS, premier French. Prime . Minister, said Community directive, govern- Mow to the Glasgow yard, 
British film studio. Is up ter yesterday a financial package ments may not give subsidies which recently gained an order 


sale bv the financially troubled I had been agreed which would of more than 28 per cent of for two container ships from 
saie oy me unauraaiiy iniuuieu i ... * ehin If rhin, KAm 


film company Cannon Group for enable Brittany Ferries to pace toe cost of building a ship. If China worth £50m, which 
(£14.931). | the order in France. Speaking the co mm i ssi on finds that the should guarantee toe jobs of 


New Vietnam purge 

Vietnam leader Nguyen Van 


viemam xeaoer v*u a fjaom diversified 

Linh announced another Com- Mimnanv p»» a 

xnunist Party purge, and said services company. «ge a 


GODFREY DAVIS and Sunlight I Atlantique region, where the take out an injunction and years. 
Service Group are to merge, ] shipyards are located, he said block the deal, although so far The 


shipyards are located, he said block the deal, although so far 
"several hundreds of millions it has never done so. 


of francs” would be used for 


ocfc the deal, although so far The French finanrtm package 
has never done so. is believed to involve a leasing 

Govan was thought to have pool led by Soriete Generate. 


economic reforms did not mean 
a return to capitalism. Page 3 


Sixteen die in Jail 


DREXEL BURNHAM LAM- 
BERT, US investment banking 
group under Investigation for 


toe package of subsidies already been well placed to win the Besides heavy subsidies from 
planned ter the ailing French order until Brittany Ferries the Industry Ministry budget, 
shipbuilding industry this year, came under pressure from local the deal is understood to bene* 
Mr Giles Shaw, Industry authorities in Brittany to place fit from »ddiHnn»i funding 


Sixteen prisoners on death row 
died when armed police broke 
up a riot and escape attempt in 
which the executioner was 
beaten unconscious, Nigerian 
newspapers reported. 


its links with disgraced arbitra- Minister, said be was “sur- it with Chan tiers d’Atlantiqne from the Marine Ministry and 
geur Ivan Boesky, said the US prised and disappointed” that at St Nazaire. Initially the interest rate subsidies agreed 


Government’s insider trading an order with the French yard French yeard did not seek the by the Finance Ministry, 
inquiry would have no M material 


adverse effect” on its fina n ci a l 
condition. Page 19 


Strawberry protest 

Spanish farmers threw cow 


Ladbroke seeks writ on Extel 


dung at France's embassy in 
Madrid, in protest at French 
import ' quotas for Spanish 
strawberries. 


lAiuoruKe seeks writ 

between DM 400m (£134m) and 

DM 45Qm for the chemicals and BV CLAY HARRIS 

S^gr^S^SnS-hte 1 »££ LADBROKE, the betting, hotels rumours about the company 

Of the Flick & “d^etamng grou£ yesterday 


dustrial empire. Page 19 


issued a writ seeking an in- shares continued to recover yes- 
junction to prevent Extel, the ter day, adding 9p to close at 


MARKETS 


financial and sports informs- 407p. However, this is still 
tion company, from dissemin- below last Friday’s dose 


DOLLAR 


New York lunchtime: 
DM 1.79 
FFr 5.9805 
SFr 1.473 
' Y139.7 
London: 

DM 1.7885 <L7778)' 
FFr 5^735 (5.945) 

SFr 1.47 (L48) 

Y1 39.65 (139.35) 

Dollar index 1002 (99.6) 
Tokyo close Y139.08 


STERLING 

New York lunchtime 3L6735 
London: S 1.675 (1 A795) 

DM 2495 (24*85) 

FFr 10:005 (9.B8S) 

SFT 2.4625 (2.46) 

Y2S4 (same) 

Sterling index 73.6 (same) 
LONDON MONEY 
3-month interbank: *' 

closing rate 8H% 

NORTH SEA OIL 


atlng six specific statements 
about toe group. 

Extel replied last night that 
it had ?.at no time promoted, 
caused or been a party to any 
of toe rumours itemised in toe 
writ issued by Ladbroke" in 
the High- Court In London. It 


Thursday, 


Exchange agreed to investigate planned. 


apany betting shops. 

Ladbroke Ladbroke is tire largest single 
ryes- shareholder in SIS, which will 
se at compete with Extel's racing 
still results wire service. Both Extel 
te and toe agency strongly denied 
Stock that such a campaign was 


recent share dealings after 


Extel's response to the writ 


request by Charterhouse Bank; last night also noted that “the 


Ladhroke’s Qnanrial adviser. chairman of Extel has already 


Charterhouse's request cited denied puliriy any involvement 
a trade publication report that by Extel in such rumours relat- 


would “ strenuously defend any Massimi Pollitt Business Corn- 
legal proceedings brought by muni cations, the advertising 


Boase ing to Ladbroke. 

Com- “ Extel is therefore 


i Ladbroke against it in this agency, to run a campaign oexn- juaubroke has issued legal pro- 
regard.” grating the integrity of readings in li^it of these state- 

Ladhroke’s action followed Satellite Information Services, merits and without making any 
sharp faTte in its share price a new company that will tele- attempt to ascertain from Extel 
earlier this week after diverse vise race meetings to British the truth of the allegations.” 


muni cations, the advertising astonished,” it continued, “ that 
agency, to rim a campaign deni- Ladbroke has issued legal pro- : 


grating the integrity of readings in light of these state- 
Satellite Information Services, merits and without making any 


earlier this week after diverse 


US LUNCHTIME RATES 


Brent lSday May (Argus) 
$18430 ($1855) 


CONTENTS 


Fed Funds 6ft % 
3-month Treasury Bills: 
yield: 5.67% . 

Long Bond: 88ft 
yield: 8.605% 


STOCK INDICES 


UK elections: t he battle is on ... 


New York: Comer June latest 

$466.10 

London: <455.25 ($458.50) 


FT Old 1,858.7 (+30.7) 

FT-A AU Share 1,080.1 f+2.1%) 
FT-SE 100 2.12&5 (+48.0) 

FT-A long gilt yield index: 
High coupon 8.72 (8.82) 

New York lunchtime: 

DJ Ind AV 2^22.73 (-1168) 
Tokyo: 

Nikkei 24,689.23 (+38L68) 


Man ia news: Lawrence Walsh, Irangate 
fraud investigator — 6 


Milton Keynes: 
union 


Klaus Barbie: France ready to go cm 

trial 7 


Editorial - comment: a good box to be 
in 6 


Argentina: the fires continue to 
smoulder 9 


CAM price cAmsmt yosnrday. Sack Pena 


Austria SOI 22; Bfhraln Din O.flS0t Bilflhm BFr Canada CS1 -°0j Cyp«v« 
CEO 76; Oanmart OK 1 9-Cft Coyw E£2.2B; Finland Fmk 7.00: Franc* FFr 6.50: 
GiSv T m £ot ^G«aoTDrt8ft Hon 0 Kcnfl .HW12; India Rup Iftlndon*^* , 
Rp 3.1M. Ursa I NS 3-ttt 4*a!y Ll.flOft Japan Y600; Jordan Fila 500: Kuwait j 
FUa BOO* TabaiKHi -£150.00: Lumnbouni LFr 48; Mahytia Rin *4® Maineo 
Si WO? Db 0430: Nwbodandi H ff.OOj ftonwy MMKr 

Poa 2D: PonuBii Esc WQ: S Arabia W« B.Ol-Sinfltpor* Spain Pm 12& 

Sri Lanka Rup 30: Sws^an Z3S t T «*S? "” 85: Tim,,to 

Ota OAOQ; Turkay 1500: UAE Dh &6th USA » JO: Barauda SUO. 


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FT Actuaries 

15 

London Options ._ 

12 

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Money Mark at* „, 

12 

Bourses 

11 

14 

7 

Fonrion Eaehangss 
QoM 

12 

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Ohtmi Naw* ™ 
Raoant Issuas ... 

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UK Naw*: 
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Announcement 
of election date 


due on Monday 


BY PETER RIDDELL AND MICHAEL CAS5FLL 

MRS MARGARET THATCHER 
and her senior advisers will be 
presented tomorrow afternoon 
with a detailed Conservative STATE 
Central Office analysis of 
Thursday's local election re- 
sults suggesting that the Tories Conservative 
would win an overall Commons Labour 
majority in a general election. SDP/Lfb 
AU the signs are that an Other* 
announcement will be made on 
Monday that the poll will be 
scheduled for June 11. tary target 

The Tories and the SDP/ n0 ck, La bo 
Liberal Alliance both gained BBC Radio 
seats in the local elections, diction for 
which took place across the was a majoi 
country with the exception of so “the ele 
London and Scotland, while for us to \ 
Labour suffered sizable losses. Privately, 
The results were patchy, how- is dishearte 
ever, with differences between —gains of 

re f« 0ns ’ m. ^ v . . trol of com 

Bars Thatcher intends to ca& earlier 
sleep on the advice which will particularly 
be given tomorrow at Chequers the losses j 
by senior ministers at what one Dr John ( 
yesterday described as “the environmen 
taking of voices.” She will 'The gap is 
reach her final decision on we think tl 
Monday morning, hold a special in the cami 
meeting of the Cabinet and i n the g 
then see the Queen for formal said Labou 
approval of the dissolution. such as Lin 
With final analysis of the diff and W« 
results still being completed Alliance 
last night, Tory strategists saw lient. sayinj 
the outcome as unexpectedly as the bigge 
good, particularly in the west ing comfort 
and east Midlands, where the get for 400 
party has attracted the support falling shoi 
of working-class traditional of a bigger 
Labour voters. Mr David 

Estimates of votes cast said it was ; 
suggest that the Tories’ share board into 
slipped fractionally from the tion." 

40-5 per cent level of May 1983, Dr Owen 
when the seats fought on toe Libera] 
Thursday were last contested, “major pa: 
Labour's support dropped be- on the basi 
tween 3 and 4 percentage points suits. The: 
to about 31 per cent, while the 20 seats 
Alliance advanced about five Alliance p: 
points to more than 27 per hadthelarg 
cent The Alii 

Depending on adjustments missed Labe 
ter a higher turnout and "another nil 
different voting behaviour in Mr Gerald 
parliamentary instead of local shadow hom 
elections, this implies an over- last night tl 
all Tory Commons majority of the detailed 
at least 20 to SO seats, accord- well-placed 
ing to academic estimates. . score House 
Labour leaders sought to from the Coi 
make the best of their losses, and Social I 
stressing their already strong Labour st 
local government base and the pinch, Pagi 
gains made in key parliamen- on 


Elections 


STATE OF THE PARTIES 

Seats Seats 
„ sained Ion 

ConfcrvatJve 586 568 

Labour 179 399 

SDP/Ub 648 210 ; 

Others 146 442 



*+ » » 


tary target seats. Mr Neil Kin- 
nock, Labour leader, said on 
BBC Radio that the best pre- 
diction for the Conservatives 
was a majority of 12 to 15 seats, 
so “the election is wide open 
for us to win.” 

Privately, however, the party 
is disheartened by the outcome 
—gains of both seats and con- 
trol of councils had been fore- 
cast earlier. Party leaders are 
particularly concerned about 
the losses in the Midlands. 

Dr John Cunningham, shadow 
environment secretary, said: 
“The gap is already narrowing. , 
we think that we can close it j 
in the campaign.” ! 

In the general election, he 
said Labour would win seats 
such as Lincoln. Basildon, Car- 
diff and West and Leeds West. 

Alliance leaders were ebul- 
lient. saying they had emerged 
as the biggest winner by exceed- 
ing comfortably the public tar- 
get for 400 net gains — though 
falling short of private goals 
of a bigger advance. 

Mr David Owen. SDP leader, 
said It was a “very good spring- 
board into the general elec- 
tion." 

Dr Owen and Mr David Steel, 
toe Liberal leader, predicted 
“major parliamentary gains” 
on the basis of Thursday's re- 
sults. They listed more than 
20 seats not held by the 
Alliance parties where they 
had the largest number of votes. 

The Alliance leaders dis- 
missed Labour's performance as 
“another night of disaster” but 
Mr Gerald Kaufman, Labour’s 
shadow home secretary, claimed 
last night that on the basis of 
the detailed figures Labour “is 
well-placed to gain several 
score House of Commons seats , 
from the Conservatives, liberals" 
and Social Democrats.” 

Labour stalwarts feel the 
pinch. Page 3; The battle is 
on. Page 6' 


AIR SAFETY 


British air safety standards 
arc much belter then they 
were. Indeed, automation and 
legislation are making flying 
the safest form of transport. 

Page I 


FINANCE 


The rise ir. share-dealing 
commissions. 

Page V 


PROPERTY 


New homes and developments. 
Page XV 



Can America make it? 


CLIMBING 


A huge trade imbalance, a 
slUing currency, falling real 
wages and a dismal produc- 
tivity record. A decade ago, 
these were toe hallmarks of 
a struggling British economy. 
Today, they characterise an 
American economy which Is 
straggling to apply its tradi- 
tional strengths in technology 


and management against 
fierce competition from the 
Far East. 

On Monday, the FT 
launches a series of articles 
which will examine the 
reasons for faltering US in- 
dustrial performances and 
assess the efforts of American 
corporations to reverse the 
decline. 


Hardships and heroics on 
Menlungste: Chris Bennington 
reports f rom T ibet 
Page XXTV 


Georgia USA: trowel and 
tourism 


A Special Repor t 
Pages XI XIII 


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2 


Volvo, Mitsui in 
deal to build 
buses in Japan 


BY KEVIN DONE. NORDIC CORRESPONDENT IN STOCKHOLM 


tine Japanese trading bouse, Mitsui, Including the future 
and Fuji Heavy Industries, the supply of articulated buses. 


engineering group and maker 
of the Subaru car. 


• Electrolux, the Swedish 
household appliances and in- 


Volvo is to supply complete dustrial group, which is also 
chassis from Sweden, while the the leading European maker of 


bodies will be produced locally car seat belts. Is to form a joint 


by Fuji. 


venture with Fuji Kiko of 


Mitsui has overall responsl- Japan to develop, produce and 
hility as importer for the ven- market personal safety equip- 


ture, and it is expected that the ment for motor vehicles. 


marketing of the buses will be Th e Swe dish group’s car seat- 


handled partly by Nissan Diesel fc e i t subsidiary, Electrolux 


Motor and Xsuzu Motors. 


Autoliv, said the joint venture. 


Mr Juergen Bahr, marketing to be called Fuji Autoliv KK, 
director for Volvo Bus, said the was aimed at substantially in- 


first units should be completed creasing its market share in 
by the end of 1987 and it was Japan through the introduction 


hoped to sell 30-50 units a year of new and advanced techno- 


in Japan from 1988. 

The bus, which has been 


logy. 

Carla Rapoport adds (Tom 


specially adapted to gain type- Tokyo; Volvo and Fuji are also 
approval for the Japanese reported to be considering a 


market is the so-called Super- possible tie-up on cars, but Fuji 
Hi-Decker luxury tourist bus said yesterday that no decision 


aimed at the upper segment of has yet been reached. Such a 
the market with . a price of deal would be advantageous to 


about SKr L2m (£121,000) for Fuji, which is keen to expand 


each unit 


Volvo gained its first foot- market 


its share of the European 


hold in the Japanese 


Fuji’s $500m (£3 12m) joint 


market in 1984 when it sup- venture with Isuzu in the US 
plied 100 articulated buses — will start construction next 


the bodies were produced by week in a suburb of Lafayette, 
Fuji — for transporting visitors Indiana. It will be the seventh 


to the 1985 Tsukuba "World Japanese car plant in the US, 


Exhibition. 

Volvo’s 


breakthrough 


with production aimed to start 
in by November 1989. 


Kohl sends Bluem to 
end party squabbling 


BY PETER BRUCE IN BONN 


CHANCELLOR Helmut Kohl of to a bead because the party 
West Germany has persuaded chairman there. Professor Kurt 


his popular Labour Minister, Mr Biedenkopf, and bis “ first ” 
Norbert Bluem, to run for deputy, Mr Dieter Puetzhofen, 


leadership of the Christian have fought openly over who 
Democratic (CDU) Party in the to appoint party manager. 


key state of North Rhine West- Prof Biedenkopf, an ener- 


phalia later this month in an getic, liberal academic, is one 
effort to end chronic party is- of the CDITs least predictable 


fighting there. 


politicians. He is a West- 


The state is home to about a phalian and deeply disliked by 
third of the West German the Chancellor. Mr Peutzhofen 


population and is the only large is a Rhinelander, and Mayor of 
one which the CDU or its Krefeld, near Dusseldorf. Prof. 


Bavarian sister, the Christian Biedenkopf has refused to 
Social Union (CSU), does not accept as party manager a man 


control. The CDU was soundly put up by the old Rhineland 
beaten by tbe Social Democrats faction and in the past two 


in state elections in 1985. Since weeks relations between him 
then, the Christian Democrat and his deputy have all but 


organisations in tbe Rhineland collapsed. Earlier this week the 
and Westphalia have merged, parliamentary party in the 


but with disastrous results, as state legislature in Dusseldorf 
both sides have tried to claim called on both men to stand 


influential positions. 

Mr Bluem has a sharp 
national profile and though he 


down and face re-election, 
sharp which they agreed to do. 
gh he It was not immediately clear 


comes from the state, is not yesterday whether either man 
closely identified with any of would oppose Mr Bluem’s can- 


the old factions. However, he is dldature. In the wake of the 
reported to he insisting that his CDU*s recent ground-breaking 


nomination by the CDU execu- victory in Hesse, party leaders 
tive in the state be unanimous, in Bonn are likely to work 


Nor would he give up his federal hard to ensure a smooth elec- 


cabinet post if elected. 


tion for tbe Labour Minister in 


Fortunately for Mr Kohl the hope of restoring peace 
and his party, the next poll in and, eventually, taking the 


die state is scheduled for 3990. state away from the Social 
The current crisis has come Democrats. 


Bonn sees growth slowing 


BY DAVID MARSH IN BONN 


THE West German Government forecast a result of sluggish 
has revised down significantly orders and output since last 


its economic growth forecast for autumn, comes as the Gove ra- 
th is year to just under 2 per ment has been trying with some 


Financial Times Saturday May 9 19S7 


OVERSEAS NEWS 


US offers 
50% cut in 
long-range 
missiles 


Shamir bid to block talks row 


BY ANDREW WHITLEY IN JERUSALEM 

PRIME MINISTER Yitzhak This would circumvent the 


VOLVO, the Swedish car, Japan has been strongly helped 
energy and food group, is to by the appreciation of the 


enter the Japanese bus market Japanese yen. It is also discus- 
in a joint venture with Mitsui, sing other bus projects with 


1 PRIME MINISTER Yitzhak This would circumvent the One account— firmly denied 

HlfW-fSli m Shamir will make one last omstauding points in tbe Peres hy the Labour Foreign Mini a- 
v O *■**■*& effort tomorrow to heed off a plan of Soviet and Palestinian ter — speculated about a pact of 

m M decisive showdown at a meet- representation. joint administration with 

fTIlCGl Ipc iag of Israel’s policy-making j- ^ reference to Jordan of the occupied West 

IllJ fl OllUS Inner-Cabinet on Monday over ^ jr, Yitzhak Bank region, including East 

By wniSam DuHfcrce in cont ™ vessial international Labour Defence Minis- Jerusalem, during a "transition 

By William Dullforee In Gen**, peace conference proposal. “r? yesterday athctedlfr period." 

THE us vesterdav n resented At Sunday’s weekly session of Shamir over the Marking last With Mr Peres continuing to 

tbe Soviet Union with a draft the 6111 coalition Cabmet the month of a planned visit to the exude a breezy confidence, 

treaty nrovidlnx for a 50 per Likud leader— fighting to Mock region by Mr George Shultz, US Labour Party strategists now 

cent reduction hi long-range 1116 prospective conference— is Secretary of State. believe they could muster a 

strategic nuclear weapons by *2*J;*®i to raMe two jfr shultz was to have come P»*tj«nentary majority next 

14 H u proposals to tne US-arafteo _ t v A week to force a dissolution of 

The text tabled at the being pPMaoted by his ^ ee d^bet^n uTSJfthl the 30-month-old National Unity 

The tort, toiled at the arch-rival, Mr Shimon Peres. thrtWr «*t».oTn Government if Monday’s inner 

^lateral Geneva arms wmtrol Details of Mr Shamir’s latest n ratting decision goes against 
alks. tests the lonx-standiiut with Jordan. Mr Rabin told “waswu 


The tort, toiled at the 
bilateral Geneva arms control 
talks, tests the long-standing 
Soviet refusal to sign a long- 
range weapon treaty before 
the US agrees to drop plans 
to deploy weapons in space 
under President Reagan’s 
Strategic Defence Initiative 
(SDI). 

Mr P ofmM Lehman, chief 
US negotiator on strategic 
arms, said the draft built on 
earlier agreements with the 
Soviet Union. 

President Ronald Reagan 
and Mr Mikhail Gorbachev 
agreed in Reykjavik last 
October to cut strategic 
nuclear delivery vehicles to 

1,600 on each side with a ceil- 
ing of 6,000 warheads each. 

The US draft submitted 
yesterday lengthens the 
period for completing the 
reduction to seven years from 
the five agreed at Reykjavik 
and calls for sub-limits on 
different categories of 
weapons which the Soviet 
Union ei»fan« bad been dis- 
carded at Reykjavik. 

A seven-year term should 
give the Soviet Union the 
flexibility it says it needs to 
agree on the sub-limits. Hr 
Lehman said. 

Washington’s concern is to 
prevent the Soviet Union 
from meeting the overall 
6,000 warhead limit by 
destroying older weapon 
systems while retaining most 
of its more accurate, more 
powerful missiles. 

Mr Lehman said previous 
nuclear weapon agreements 
such as SALT-1 and SALT-2 
bad differentiated between 
systems. Tbe sub-limits 
sought by die US would im- 
pose constraints on ballistic 
missile warheads. 

After the Reykjavik meet- 
ing, US officials said Wash- 
ington was proposing a sub- 
limit of 4,800 warheads on 
ballistic missiles. 

Soviet officials have already 
voiced opposition to tbe US 
sub-limits and to the exten- 
sion of tbe deadline for com- 
pleting the cats. .They have 
maintained the link between 
an agreement to reduce long- 
range nuclear weapons and a 
US concession on SDL 

Moscow is giving greater 
priority to the talks on 
eliminating medium - range 
nuclear weapons from 
Europe, where both sides 
now have draft treaties on 
the table in Geneva. 

Progress here is at present 
held np by West Ger- 
many's difficulty in deciding 
whether or not a medium- 
range treaty needs to provide 
for retention of some shorter- 
range nuclear missiles on 
each tide. 

Without this, some mem- 
bers of the Bonn Government 
feel West Germany and 
other European Nato conn- 
tries will be exposed to 
Soviet superiority in battle- 
field nuclear weapons and 
conventional forces. 


defensive ploys have not yet Armrt D 

been leaked to the press, but Army Radio. 


they could well be variations 


spate of scare stories 


on an idea he bar already emerged from official circles 


advanced semi-public^ of a this past week about the "secret 


small -scale conference restric- agreements" Mr Peres is said 
ted to Israel, Jordan, Egypt to have reached with Jordan’s 


and the US. 


King Hussein. 


Mr Yitzhak (right) 

may try to push idea of 
smaH-ecale conference with 
restricted participation. 



How an FT ‘bomb’ shook Beit Hakarem 


BY ANDREW WHITLEY 


amnesia can temporarily help briefcase, 
ease the strain. But it la very jj 0 t T hs 
much a public vice. i on£ . r? an 


r T Saif? thoughts of stolen cheque security authorities had re- wasting police time in this way. 

books/ credit cardsT notepads doubled their vigilance expect- A shopping bag or a parcel 
filled with embiyonic stories radical Palestinians to left in a public place is an 

tS-'jK and, worst of alL the telephone attempt a propaganda success instant object of suspicion, 
setting on an alarm which . . . rri . _ T7r»i;to 


and brought a sharp reminder Staff and customers were on Algiers. 


their "parliament-in-exile’' 


in would soon disappear never to 
be seen again, no one will even 


of how instinctively s ecuri ty the far side of the road 100 Explaining the situation to go near an abandoned bag in 


conscious Israelis have become, yards away as a policeman the grizzled policeman holding Israel. And shopping bags are 
Newspapers sent from abroad directed traffic away from the bade the small crowd was not not searched as one leaves a 


tend to arrive in large bundles, shuttered building. The fiat easy. But speed was essential, supermarket or department 
Clutching an armful of the above had been evacuated and Five minutes later tbe precious store but as one goes in. 


Jordanian military split oyer 


Jordanian military split over J®?*® ! wmb * rs 

* kill 11 in strike 

purchase of Tornado or Mirage into Lebanon 


BY RICHARD JOHNS IN AMMAN 


By Nora Bomtany In Bairut 
AT LEAST ll people died 
and their respective relevance when Israeli bombers struck 


THE Jordanian military estab- any such major purchase. and their respective relevance when Israeli bombers struck 

lishment is deeply divided over Jordan is also understood to to the kingdom’s defence guerrilla bases and tbe south- 

whether to seek the purchase of have looked at the Soviet Mlg- needs, one reason for the ern edge of & Palestinian 

the Tornado made by the Anglo- 29, but its purpose in doing so king’s preference is tbe pos- refugee camp east of Sidon in 

/> -r» J. ... .V u. il l. V . 7 .. . < 4 ,/. .Kiwi n.lu- _«— wM . tiki 


German-Italian Pasavia con- is thought to have been to make sibiltty that Jordan may have tbe third major air raid since 
sortium or the French Mirage comparisons — and perhaps to co-ordinate one day in a May Day yesterday. 


2000, according to well-informed needle the US. 


regional war with Saudi Arabia 


military observers in Amman. Tbe fact that the king now which is buying 72 Tornados. 


Rockets shattered a number 
of bouses and one Israeli-fired 


King Hussein, Lt-Gen Zaid favours Tornado does not neces- He also apparently accepts I missile was . responsible for 


bin-shaker, the Commander-in- sarily weigh the balance deci- the argument that it has much most of the 11 dead and 40 
Chief, and the General Staff sively in favour of Panavia, greater “ endurance " — ability wounded. A number of women 
favour tbe Tornado ADV inter- military experts in Amman say. tQ stay in the air for a long and children were among the 
ceptor variety. But the Air Past decisions have shown that tim. in anticipation of intru- victims. 

Force is pressing for its French he has great respect for the ders _ and the far superior CmVlimD „ .v. 

rival as the advanced defensive views of his operational com- threat evaluation given by a ^?S e S2?i»’ 
aircraft urgently required to mandeis .and the middle crew. Jgfi. 

replace its ageing Mirage F-ls. echelons of the officer corps. . — A . .... 


Spokesmen for the. main- 
stream Fatah organisation of 
Yassir Arafat, tbe Palestine , 


Jordan’s *r Dusault. ^nmrfhflew has Air Force’s argument, Idbrtattm Orranisation <FLj» 

40 aircraft, enough for two been mounting a much heavier in favour of the Mirage 2000 Is. chief; - c la im ed vEuerrill*5 


squadrons, together with train- campaign ' than' British Aero- said to be based on the fact -were hurt* when Israeli’ "war- 
ing versions. With support space, having managed to sell **5 commanders and fliers planes sbtfed hilltop targets 
systems, training, spares and only a handful of Mirage 2000s concept of a one-pilot used as tra i n i ng bases, 

weapons, any such deal would last year, a failure which con- airmaft which they have been Israel's air operation, the 
probably be worth about $2bn tributed to the company’s poor P. 35 *- 15th this year, came less than 

(Pi v.hfii results in 1986. The Jordanian pilot does nn . v nin . prn 


(£1.2bn). 

Competition began when the 


results in 1986. 


' The Jordanian pilot 


BAe has its hands full with not like the idea of a navigator 


one hour after the FLO issued 
a statement in Sidon announ- 


kingdom looked for other the Saudi order which involved sitting behind him making the that three of its members 
suppliers after the US Congress delays in the delivery schedule real decisions with the avionics were juu e( j by Israeli troops 


blocked the sale of F-20s or for the RAF. Any commitment which he controls, 

F-16s requested from the to Jordan would only mean owerver said. 
Administration. Jordan has pro- further slippage. This is not just a i 


This is not just a question 


ceeded with the search on the 


one while trying to cross Lebanon’s 
Bon southern border strip. 

D tn Israeli air strikes have bees 


ceeded with the search on the Another important factor in of mac hismo, according to to! in 

assumption that financing the final outcome may be the Western experts, who say that fWPg*j far thTradketin? of 

can be found to make such a manoeuvrings of leading Jor- the past experience of senior frarnDMirtniu 


costly weapons purchase. 


costly weapons purchase. danian anus sales agents. Com- officers of air forces can often 

The assumption is that financ- missions of up to 10 per cent prove influential in m a kin g msiae ■ L ' eDanaB - 

ing arrangements would have to are a feature of Jordanian decisions. On May 1, 16 guerrillas and 

be made by suppliers, but it weapons purchases, a fact not "Dassault has always had the two civilians were killed. On 

appears that King Hussein does generally appreciated in the reputation of making cavalry- Wednesday,- at least seven 


officers of air forces can often Northern Israel from positions 
prove influential in Tnoking inside Lebanon, 
derisions. On May 1, 16 guerrillas and 

"Dassault has always had the two civilians were killed. On 


have at his disposal secret funds West. 


man-in-the-sky aircraft.’' com- people were killed and 34 


made available by the Gulf oil- Apart from the intrinsic mented one aviation expert con- wounded, mainly camp resi- 


p reducing states to help with merits of the Western aircraft tacted in London. 


Tokyo urges scrapping of industrial tariffs 


this year to Just under 2 per ment has been trying with some BY *AN RODGER IN TOKYO 

desperation to try to maintain JAPAN is urging developed crimlniation. Tbe average tariff allowed. However, recognising services, intellectual property 


Support pledge 
for reform 
of agriculture 


St rt^th^° n °* * ias * * eW 831 picture of optimism countries to agree in the new level in the US is 4.4 per cent that if tbe proposal were imple- and strengthening the Gatt Bjr Carla Rapoport In Tokyo 


over the economic outlook. 


^ _ Lwunuicn u# ogiDC m uic ucn 

months - 5 a !S 0 ^i c 1 * 0II S 00k * Uruguay round of trade negoti- 

Govenunent officials last r Stoltenberg, the ations to eliminate all tariffs 

night confirmed that an inter- Finance Minister, is having diffl- on industrial goods. This is the 


Uruguay round of trade negoti- and in the EEC 4.7 per cent. mented all at one-, some system— are expected in coming japan tk 

-11 ur- CaKnMm Vnlutn, nranifrine mioht nnn^lirifr wwhr Tha Ommmmmit hn Wt .. . . Support 


Government officials last „. Mr Ge ™ a ™ Stoltenberg, the ations to e limina te all tariffs Mr Selichiro Noboru, director countries might erect non-tariff weeks. The government has yet the call tor intarnatinrui sort 

night confirmed that an inter- , ®? c . e “““tor. is having diffl- on industrial goods. This is the of the international organisa- barriers in some sectors it to decide whether to make pro- cultural reform ~ with wfr 

ministerial committee of ex- ouity keeping the federal bud- first major proposal for the new tions division of Japan’s Foreign acknowledges that a scheme for posals on agriculture or non- imnortant oualfficationT 

« eet deficit this WBF And FlPTt r-.M. J tiriffc ctmo. wm.IH tariff lurrloK liUJAJriAUl. 4IUU1UCBUOUS — at 


perts, which is drawing up fore- f®* deficit this year and next Gatt round, and Japanese offl- Ministry, agreed that the tim- reducing tariffs in stages would tariff barriers. theinlnisteria! meeting irf 

casts of tax revenues this year, Pi?®?*? rials expect it to meet stiff op- ing was right for such a pro- have to be negotiated, • Japanese business leaders Organisation for Economic 


Organisation for Economic Co- 


wers now working on an ^ - 5 ^ n \ an ^ position. Even though average posal despite the difficulties. Developing countries would have appealed to the US Con* nn&ration and Derainnumn* 

aeniTnnHnTi DM 28b 0 f£9.4bn) reSOectlvClv 1 „ TO 1 , “Tt, rha nroun* clhmttnn whin * ^ .... nmmn . Vjn S- op era Li Oil ana development in 


assumption Just over 0.5 paints 28bn (£9.4bn) respectively tariff levels in the industrial- “In the present situation when not be expected to give up their gress not to approve a bill in- Paris next week.' 
below the forecast made by the 35 f of Jower foan ex- ised countries are low, each foreign exc h a n ge rates are so tariffs on industrial goods. The creasing the Government's xt ^ sending 


sending four senior 


working do dilation toe sameas eCQn ° my , — a P option being the average tariff on industrial Japan is proposing that min- make an international commit- mate imports because it would rhinal Traa„\r^ 

last year* 5 rather than felling to °S Iy ® few ®o?tbs ago goods is only 2.1 per cent, but Ing and forestry products be ment that the rates would not remove the requirement to show winister and Mr Mut-mW d S 

^.the Free Democratic Party, there is a _60 per cent tariff, on excluded from the industrial exceed a verified leveL _ that injury .was bring caused JKS vStoJRSSSSS? *“* 


8 5 ner cent as the Government ZZ mera uaw per cem urm on eiuuuea iram mausinai exceca a ^eunea icvei. Uifll injury was wing caused fU p Aorfeiiltnm Mlnfvtei- 

hadhoDed. 35 bovenmient which controls the Economics leather and footwear, an Indus- products category, but that Further Japanese proposals and would shorten the time for 

nan uupeo. Mlmstrv ha« nnw Kaon Iw a miniKFim Tift m lowna. W% - 1 I According to a r 


According 


Foreign 


mho ” *“* now l>een PMC* try dominated by a miniority otherwise no exceptions from on other issues in the new enforcing a temporary exclusion 

The downturn m the growth tically ruled out group that has suffered from dis- the zero tariff goal should be round-safeguards, trade in ordeiT^ Mmistry Oflrial, -Japan wtil 


round— safeguards. 


Easmg of pay Go-ahead for Greece to 
curbs promised , , * « 

by Papandreou Control AcgCflfl Oil group 

By Our Athens Cormpondwt BY ANDRIANA MRODIACONOU IN ATHENS 

GREEK wage-earners were pro- THE GREEK Parliament has According to the Minister, 
mised yesterday that their lot passed a bill allowing the state the state will only exercise its 


Go-ahead for Greece to 
control Aegean oil group 


BY ANDRIANA MRODIACONOU IN ATHENS 


Senate backs 
bill to impose 
oil import tax 


Australia moves to free 

identified 

Aboriginal land fen* mining subsidies 


give approval In principle to 
agricultural reform and the re- 
cent OECD report which calls 
for a worldwide reduction in 
farm surpluses. That report 
identified Japan as having the 
highest percentage of producer , 


BY CHRIS SHERWELL IN SYDNEY 


Oil import tax .r CHRIS sherwell m Sydney JEfSSS i’LdT^n 

By Nancy Dunne In Washington the LOGJAM holding up platinum and other minerals, between Japan and its main 
■HE SENATE Finance Com- permits to explore and mine Under the proposed amend- t ” di £® p ?jf t £? rs V piu 2 lc ? 1 * riy 


THE SENATE Finance Com- permits to explore and mine 


Socialist Government, has viitu* the North Aegean Sea, with or tiations fan. 


Import tax and require the introduced in Pa rliam ent 


mentis, traditional Aboriginal 2* US. Tolyo has flatly re- 
owners will continue to con- fused to consider bilateral talks 
trol exploration and mining on “** frop 01 * of _ nee, for 
activity on their land through example. Even so, the Foreign , 


ally frozen wagra and salaries, ^i^utthe agreement of tbe “The Government’s main President to retaliate against formula for speeding applies- existing land councils. But this Minirtry soys the intended 


Mr Andreas Papandreou, tbe interested companies. 


Prime Minister, achnitted yes- The bill was passed despite of the majority of the shares Uons markets. 


goal was never the purchase closed foreign telecommunica- tions while preserving Abo- 


terday that the first fourmonths rejection by tbe conservative or the seizure of property. Absent- from tbe bill is a the 


rlginal consent, introduced 


>o- power wiH be limited to a approval of the principle of 
in once-only consent at the ex- agricultural reform is one big 


of this year had seen deviations opposition, 
from economic targets but M r Anastaslos 


Thursday, ploration 


these were “ slight n and "under Minister for Energy and Indus- he 


We’re interested in securing measure which would require promises clear derisions cover- negotiation of terms and con- 

Peponis, control over oil exploration,” some nations with " excess sor- Ing vast areas of the Northern ditions for both exploration and 

id Indus- ha nM nltiBAs ’ 1 tn rmhuv tViftlF traria Tprrllnru Tftlnlnir 


no circumstances will stabllis- try. said the Gove rnment would 
a tion continue after the end of immediately call the consor- 


to reduce their trade I Territory. 


try. said the Government would r . with the US according to a Mining companies have 

immediately call the censor- “ numerical formula. That pro- grown increasingly angry that 

tium partners, who are led by posal, advanced by Mr Richard only one exploration agreement 


oration stage and the step forward for Japan/* 
sotiation of terms and con- - However, the Japanese will 
tions for both exploration and *raue that . other countries 
Lnlng. should go further on agrt- 

Consent and an exploration cultural reform than Japan 
reement must be concluded because . of two important 


mining. 


ion continue anerwe enu w uumeaiaieiy cau tne consor- — numerical formula. That pro- grown increasingly angry that agreement must be concluded because . or two important 

187.” t , tium partners, who are led by troiovf* T n n Mtotmm Hnna nrtYri Posal, advanced by Mr Richard only one exploration agreement within 12 months. Any dispute domestic factors. There were 

The authorities privately cast Denison Mines of Toronto, to 52* Gephardt, the Missouri Demo- has been reached out of some can be referred to a mining food security and ecological 

rintlR doubt on the DrOSDeCtS ne satiations- OBS la me Aegean m oruer W nrnfir PresidanHal ftAnfattrlar 4 b annllrstlnnc CiRM tha ftnmmlMitftnA. 4 n. nuimhii TKa mlnietvir nffinial 


serious doubt on the prospects negotiations. 

for achieving a 10 per cent in- In these, it would seek an 

flation rate and a reduction of effective veto power for the 


the net public sector borrowing state Public Petroleum Corpor- 


igotiatzons. ntinitoseth eriafc^ of a hip cratic Presidential contender, is 150 applications nnce the commissioner for conciliation concerns. Tbe ministry official 

In these, it would wek an PossOie ^ the Bouse bill Government passed its Aborigi- and arbitration. Another 12 said those countries with higher 

fective veto power for the 1U1 The President has vowed to nal righto legislation for the months would be allowed for a subsidies and tariff^ yhanid do 

ate Public Petroleum Corpor- The two countries have been veto any bill containing the Northern Territory in 1976. mining agreement which must more. 


requirment from approximately ation (DEP) over all NAPC oil involved In a tense dispute over Gephardt measure, but the They say that Australia, with be approved by the Federal Other topics to be discussed 


14 per cent of gross domestic exploration activities, as fore- continental shelf rights in the Administration also opposed tbe its serious balance of 


product to 10 per cent 


seen by Article Two of the bill. Aegean Sea since the mid-1970s, telecommunications provision. 


its serious balance of payments Minister for Aboriginal Affairs, will be Japan's proposed 
deficits, cannot afford to have The agreed terms and condi- YS.OOObn <£2L7bn) pump- 


Tbe Prime Minister said in a DEP has been a minority part- and have twice come close to a j saying it contains “overly haU the territory “locked up.” tions must cover only com pen- priming supplementary budget 

T- i.i.iu cAima Iapir flap m tha nm rifira mi (UsnfpnTitarinn in that 1 n mi.- xu. I.-- a. » j .. . . - 


March interview that some form ner in the consortium since military confrontation in that restrictive” negotiation dead* They say the region has great sation for. damage or disturb- and the forecast slow-down in 

of stabilisation would continue 1985. period. lines, exploration potential, for gold ance to Aboriginal land economic growth this year. 


growth 


S African 
black unkms 


fear more 


restrictions 


FORGETFULNESS MAY be a pink paper collected at the Post a police van stood by as the Financial Times contacts book 
private virtue in Israel where Office it was perhaps not sur- bomb squad prepared to deal would be blowing in tiny frag- 


the stresses of daily life take prising that in the confusion I with the suspected dangerous ments over the heads of tbe 
a heavy toll, and a little overlooked the battered brown device left inside by some un- residents of Beit Hakarem. At 


briefcase. scrupulous terrorist last the message got through. 

Not that it was forgotten for A sntol bomb had gone off in The briefcase was retrieved, 
long. Barely half an bon r later a ^ a Tel Aviv suburb profuse apologies all round- 
racing baric again foil of ttie previous night and tbe Israeli citizens are fined for 


^h!Sk g the contacts hook, Tfo and the srene 111 “*« Zionist enitity” to especially in Jerusalem. Unlike 

SS&SMSttSSSS transformer 1 Ioaafl 016 ® cene colndda with tha holding of in other countries, where it 


By Anthony Robin* on to 

JohMWMbWf 

SOUTH AFRICA’S black 

trad* unions »**£ extra- 
oujiamentary religious and 
ueUtlcal group* which receive 
income from abroad W JJ 
paring for ■ cut-off In funds 
and increased pp5 *T w * ftn * 
their activities following the 
wbltca-only electing C»c« 
hints ot a clamp-down on 
extra-parliamentary 
tion amt from FreHatm 
P W Botha, whose, watloaai 
Party swept back to power but 
feces a stronger right-wing 
oppOSitiOU- . „ 

Mr Botha said the Govern- 
ment had received a clear 
mandate to ensure aeeaitty 
as a primary objective. Ho 
added that any change would 
have to take place through 
Parliament and negotiations 
With - black leaders who 
believe in peace.” 

The Government would 
-take a very strong stand an 
extra-parliamentary actions ag 
well as the financing of 
organisations from outside 
oar country.” 

Last October the Govern- 
ment cut off foreign funding 
for the anti -apartheid United 
Democratic Front by declaring 
it an "affected organisation.” 
But yesterday, Mr Justice 
Dldcott of the Natal Supreme 
Court, over-ruled the decision 
on a technicality. The Gov- 
ernment is expected to re- 
introduce the amended 
declaration shortly and 
broaden Its application to 
withhold foreign funding from 
other organisations. 

Meanwhile, anion fears that 
the black union movement 
will now be the target of 
repression have been 
strengthened by Thursday’s 
bomb blasts in the basement 
of Co6atn House which houses 
the Congress of South African 
Trade Unions and many affi- 
liated unions. 


Indian minister 
cancels US vLic 

INDIA yesterday cancelled a 
visit to the US by Mr Narayan 
Datt Tiwari, External Affairs 
Minister, because it believes 
it has failed to persuade the 
US not to supply neighbour- 
ing Pakistan with airborne 
wanting and control system 
aircraft <Awacs), writes John 
Elliot in New Delhi. 

It suspects the US is about 
to agree to lease Awacs to 
Pakistan and that this might 
be announced .in the next few 
days when Mr Yaqub Khan. 
Pakistan Foreign Minister, fa 
expected to visit Washington. 

India is also angry that the 
US fa going ahead with a 94bn 
five-year defence and 
economic aid package for 
Pakistan in spite of wide- 
spread suspicions that Paki- 
stan has, or is on the brink of 
having, a nuclear bomb. 


Chinese to expel 
Japan journalist 

CHINA IS to expel a 
Japanese journalist for 
allegedly "stealing national 
intelligence” — a move that 
will further strain its already 
troubled relations with Japan, 
writes Robert Thomson in 
Peking. 

Ho is the third foreign 
correspondent to be expelled 
in the past year, and his 
problems reflect the fact that 
China’s security organs have 
become more aggressive since 
the fall of Hu Yaobang, Com- 
munist Party General Secre- 
tary, in January. 

Tbe journalist denied the 
Chinese allegations, and said 
his expulsion was “obviously 
linked” to China’s sustained 
criticism of Japan in recent 
days. 


US jobless rate falls 

THE US unemployment rate 
fell per cent in April to 
6.3 per cent. Its lowest point 
In the Reagan Presidency, 
the US labour Department re- 
ported yesterday. writes 
Nancy Dunne in Washington. 
Most of the gains were in 
services, but employment in 
the goods production sector 
rose slightly as empolyment 
picked up in constraetlon and 
in some factories. 


Malta election today 

MALTA'S 247,000 voters will 
todqy decide the fortunes of 
Premier Dr CanUelo Mifsud 
Bonolci and his arch-rival 
opposition and nsacodfa t 
party leader Dr Eddie 
Feneeh Adami, in a bitterly- 
fought election camuadgn, 
writes Godfrey Grim a in 
Vaietta. 


FINANCIAL TIMES 
Published by (he Financial Times 
< Europe) LuL. Froakfun Branch. 
THwocnted by E. Hugo. Frankfurt/ 
Mata, and as members of the Board 
of Directors. F Bartow. ILA.F. 
McQeaa, G.T.S. Darner. M.C. 
Gorman. D.E.P. Palmer. London, 
Prim or Frankfurt er-Sodet&U- 

Dnickexet-GnibH. Frankfurt/Main. 
Respons i ble editor R.A. Harper. 
Frankfurt/Main. GulolkUstrastt 54, 
®00 Frankfurt am Main t. © The 
Financial Times Ltd. 1W7. 
FINANCIAL TIMES. USPS No. 
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Second dan postage paid ai New 
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offices. POSTMASTER; tend addim 
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financial Times Saturday May 9 1987 

OVERSEAS NEWS UK NEWS 




PHILIPPINES ELECTION 

Campaign disorder 
raises fears of 
an unruly Congress 


BY RICHARD GOURLAY IN MANILA 


PRESIDENT Corazoa Aquino 
will take another important 
step towards. fnlfilling her 
promise to restore democracy in 
tiie Philippines when elections 
are held on Monday for the first 
independent legislature in 15 
years. 

It has. been a stormy transi- 
tion from, quasi-dictatorship 
under President Ferdinand 
Marcos to Southeast Asia’s only 
genuine democracy, but one that 
Mrs Aquino hag pushed 
doggedly. She has. survived 
attacks front left and right, but 
remains under fire during these 
elections. 

Taking part in the electoral 
process for the first time is a 
left-wing party, Fartido ng 
Bayan. The Government claims 
it is linked to the Communist 
movement which has. led an in- 
surgency for 18 years. At the 
other end of the spectrum, there 
are candidates who have 
cranked up the same political 
machines that helped keep Mr 
Marcos in power for 20 years. 

Vote buying, intimidation and 
falsification of voter identity 
papers have already surfaced. 
Troops have been drafted into 
trouble-spots and there have 


has broken down' totally in the 
campaign for the House of 


Mrs Aquino (above) 
sees no need for 
an opposition 

been more than 65' election- 
related MiHnga during the 
campaign, according to military 
reports. 

As the tWHnonth election 
campaign came to a climax 
last week; Mrs Aquino attacked 
the opposition, claiming, that it 
would be. "an obstructive force” 
that was “ only interested in 
seizing power . ,by promoting 
instability. 1 ? She has sajd.she 
sees no need for an opposition 
and has appealed to voters to 
elect only her chosen candidates 
to the 24-member Senate.' 

The pundits, with very little 
to go on, believe Mrs Aquino’s 
ticket will win a two-thirds 
majority in the Senate. The 250- 
seat House of Representatives is 
a different matter, but Mrs 
Aquino has an ace up her sleeve 
because the. constitution allows 
her to chose 50 representatives 
after the election. -- 
Palace officials say they have 
concentrated on the senatorial 
race and that party discipline 


In many areas, the opposi 
tion ha?? ho organisation to 
speak of. The fighting i 
between Aquino supporters,' 
said a former minister and 
adviser to Mrs Aquino, Mr Luis 
Villafuerte. 

For the 200 elected seats in 
the lower house, there are more 
than 1,800 candidates. Mrs 
Aquino has been unable to 
choose an Administration can- 
didate for more titan a third 
of these seats and in some 
cases has blessed two candi- 
dates for (me seat Administra- 
tion officials are concerned 
that the pro-Aqpino vote could 
be split letting in opposition 
candidates, but have failed to 
whip the party into line much 
to the annoyance of the Presi- 
dent according to her spokes- 
man, Ur Teodono Benigno. 

Many analysts believe the 
lower house could, as a result 
be an unruly mob unless 
strong party whip is applied. 
Vben the newly elected Con- 
gress first sits it will resemble 
a fresh tern at a school where 
.everyone is a new boy. AO the 
committees, alliances and chan- 
nels of communication with the 
executive branch, that newly 
elected legislatures would nor- 
mally inherit, will have to be 
established tram scratch. 

Mrs Aquino appears to want 
Congress to take the initiative 
and propose legislation — some 
observers say she sees the 
restoration of democracy as an 
end in itself. Banigno, who 
describes her government style 
as ad hoc, says she has no 
special progr am me she wants 
to push through the new 
legislature. 

Her priorities remain im- 
proving relations with her rest- 
less military, elements of which 
have been involved In at least 
three failed coups, continuing 
to push for economic recovery 
and ensuring that loyal. Marcos 
men do not 14 spread their ten- 
tacles " - through . the country 
again, said Mr Benigno. 

The most immediate issues 
on -the new Congress'* agenda 
will be an autonomy bill for 
the parts of Mindanao island. 
Moslem rebel leaders have .re- 
cently threatened to resume 
their 14-year insurgency if their 
demands are not met Longer 
term; Congress will have to 
legislate for agrarian reform 
including redistribution of the 
ownership of large' estates. 1 
* - While the ~poUtteal centre is 
trying to breathe life into the 
new democracy, the Administra- 
tion clearly still sees itself 
under siege. “ 1987 is a critical 
year and Mrs Aquino’s political 
enemies know this,” said Mr 
Benigno, referring to opposition 
on the right The Administra- 
tion is equally wary of the in- 
tentions of the left-wing Partido 
ng Bayan, during the elections. 
Mr Villafuerte said: u They are 
trying to make a determined 
bid, using the leftist grotto* in* 
eluding tiie New People’s Army, 
to show how strong they are. 


Labour stalwarts feel the pinch in Liverpool 


LIVERPOOL voted lor Labour 
and the Alliance in almost 
equal numbers in the local 
government elections, with total 
C o n s erv a t i ve support collapsing 
to less than 10 per cent of the 
vote* east By winning 43 of 
tiie 59 seats at stake Labour 
kept control of the city, but the 
Alliance just outpolled it in the 
total popular vote. 

Although tiie results left the 
Alliance disappointed not to 
have captured laxerpooL there 
was consolation in that detailed 
analysis of tiie results yester- 
day showed the party clearly 
leading in two Labour-held par- 
liamentary constituences — - 
Broadgreen and Garston. 

The composition of the new 
council win be Labour 51, 
Alliance 44, Conservatives four. 
Before the disqualification of 47 
Labour councillors by the-House 
of Lords In March, the composi- 
tion was Labour 54, Alianee 37, 
Conservatives seven, with one 
vacancy, which tiie Alliance took 
last month at a by-election. 


Ian Hamilton Fazey finds sitting 
MPs at risk of being unseated 


Overall, the Alliance won 44-4 
per cent of Thursday’s total 
votes, against Labour’s 44.3 per 
cent and the Conservatives' 9.6. 
Others accounted for 1.7 per 
cent. 

The key to Labour's survival 
was an exceptionally high turn- 
out in nine marginal wards, 
where 15 seats were at stake. 
The Affiance gained four, 
successfully defended two 
others and came within 16 and 
22 votes respectively of two 
more gains, but Labour pulled 
back a seat lost at a previous 
by-election to survive overall. 

- Meanwhile, the Conservatives 
were humiliated, losing all 
three seats they were defend- 
ing to the Alliance. Analysis 
of the voting figures on a par- 


liamentary constituency basis 
confirms that this is going to 
mean trouble for Labour if 
people who voted Conservative 
in 19S3 switch to the Alliance in 
the general election. 

On the basis of Thursday’s 
voting, the standing of the 
parties in Broadgreen is 
Alliance 542 per cent. Labour 
37.4 per cent and the Conserva- 
tives 72. This means that the 
sitting MP, Mr Terry Fields, a 
leading supporter of Militant, 
is at risk of being defeated. 

In the other Labour seat at 
risk, Garston, the shares of 
Thursday’s vote were Alliance 
432 per cent. Labour 402 per 
cent and the Conservatives 
152. The seat, which is held 


by Mr Eddie Loydon, was always 
a Labour-Conservative Twarginal 
until boundary changes last 
time made it look sefe for 
Labour. 

The other seat where Labour 
was also thought to be at risk 
is Walton, which is repre- 
sented by Mr Eric Heffer. the 
leading left-winger. Labour’s 
aggregate in Walton was 52.7 
per cent against the Alliance’s 
39.7. With the Conservative 

share at only 6. 9 per cent there 

now seems to be insufficient 
Conservative support for the 
Alliance to squeeze and unseat 
Mr Heffer. 

The Alliance's spokesmen 
started fearing the worst about 
tiie council election on Thurs- 
day night, when the first turn- 
out figures came through. 
Overall, 5024 per cent of the 
city’s electorate voted and in 
some wards the figure was 55 
per cent or more. 

Labour leaders believe that 
many of their supporters who 
stayed away from the polls last 


year — when the turnout was 
45 per cent — wanted to show 
support for the reformation of 
the party since the expulsion 
of leading Militants. There was 
also widespread sympathy for 
the disqualified and surcharged 
councillors because the financial 
penalties and bankruptcy faced 
by many of them are seen as 
unnecessarily draconian. 

At the same time, there is 
wide acknowledgement that the 
house-building programme 
pushed through by Labour in 
many parts of the city has im- 
proved many people's lives con- 
siderably. 

Mr Peter Kilfoyle, tiie full- 
time Labour official put in by 
the party to sort out Liverpool, 
admits there are eight Militant 
supporters among the new 
councillors, but believes they 
will not be a significant in- 
fluence. 

The first job of the Labour 
group when it holds its annual 
meeting next Monday will be 
to elect a new leader. The lead- 


Terry Fields: under pressure 

ing contender is Mr Harry 
Ki miner, a moderate and former 
deputy leader of the now- 
defunct Merseyside County 
Council. If elected, he will 
almost certainly have Mr Neil 
Kinnock's full backing. 


Alliance gains eight seats to hold balance of power in Cardiff 


BY ANTHONY MORETON, WELSH CORRESPONDENT 


LABOUR’S confident pre-poll 
assertion that It would win 
Cardiff was thrown bade in 
Its face through the 8DP- 
Uheral Aiihm»y »>Hng into 
tig potential sains. 

Although the party 
emerged as the largest on the 
council -with 29 «««<» It was 
■till fear short of majority. It 
will have to rely on tiie 13 


Affiance members — an in- 
crease of eight— for a work- 
ing majority. 

The Conservatives took a 
tumble, losing 10 «***« and 
outright control. The result 
did not altogether surprise 
them as Cardiff has changed 
bating at every election since 
local government reorganise* 
tion in 1974. 


The Labour leadership im- 
mediately made noises about 

not co-operating -with the 

other parties but Cardiff is 
now a “hung” council and 
some form of arrangement, 
however loose, will have to be 
made if efficient government 
Is to continue. The era of 
three-party politics has 
arrived for the first time. 


Elsewhere in Wales, 
Labour professes to have 
done well. It has captured 
control of two north Wales 
rounds, AJyn and Deeside, 
and Wrexham Maelor, where 
it was previously the largest 
single party. labour also 
made useful gains in a num- 
ber of other areas, such as 


the Vale of Glamorgan; essen- 
tially suburban Cardff, where 
the Conservatives lost seven 
seats although they retain 
control. 

Mr Andrew Davies. Labour 
assistant organiser for Wales, 
said the party was “quite 
pleased” with the overall 
result. 


Extrapolating from (he 
local results to a constituency 
basis he forecast that Labour 
stood to gain seats in the 
coming general election in 
Cardiff. Newport, Bridgend 
and Ciwyd south-west. The 
position in Swansea West, a 
marginal seat, was also look- 
ing much more secure. 


William Pftt die Younger inherited a National Debt af£2S0 million. 

Mullens mm brokers to ihe Commissioners who advised Pin an the reduction of t fuzz debt 


Rowe & Pitman guided their clients through the Kaffir Market that came dose to 
coSapse in the Boer War. (And shared national relief at news tfMafekmg's Relief in 1900.) 


Vietnam’s leader launches 


another purge of party 


VIETNAM’S LEADER, Nguyen 
Van Unh, has announced 
another Communist party purge 
and warned officials not to think 
his economic reforms would 
allow a return to chaotic 
capitalism. Renter reports from 
Bangkok. 

The potitburo “ will soon 
launch a vigorous campaign to 
purify the party” of corrupt 
members and retire those living 
off their revolutionary laurels, 
Hanoi Radio quoted him as say- 
ing. Some officials were flirting 
with 1 capitalism by advocating 
that factories work indepen- 
dently of Marxist central plan- 
ning, he said. 

Linh, who has pressed 
vigorously for change since 
becoming party chief in Decem- 
ber, criticised Vietnam’s former 
leaden for an “old-rat 
approach” towards such prob- 


lems as persistent food short- 
ages. They had left the coun- 
try floundering without an 
economic and social strategy. 

The party needed o fficials 
ready to enforce the dramatic 
changes the politburo -had 
agreed on to revive the ailing 
economy, he said. “Those who 
cannot adapt themselves must 
resolutely be retrained or 
replaced.” 

He and reform advocates are 
trying to wean party members 
from Marxist dogma and en- 
courage them to find more 
practical ways to boost farm 
and industrial output, and end 
rampant inflation and goods 
shortages. 

- Hundreds of party members 
baye. already been dropped for 
corruption, complacency or 
obstructing policy since Dec- 
ember’s national party congress 
set the new line. 


Asean to send Kampuchea 
Deace mission to Hanoi 


BY JOHN MURRAY BROWN M JAKARTA 

INDONESIA'S Foreign Mini- MY Siddhl Savetsila, in Moscow 
ster. Dr MoeMar Kusumaat- next week, 
madja, is to visit Vietnam next The Indonesian minister said 
month to tty to revive peace yesterday he expected Mr 
totes on toe conflict in neigh- ■ Sktdhi to raise the possibility 
bouriog Kampuchea, of an informal conference be- 

His visit is part of a con- tween opposing Kampuchean 
cewed effort by toe Association factions •— the democratic coali* 
of South-East Asian . Nations, tion recognised by the UN and 
which has long culled for the led by Price Norodom Sihanouk 
withdrawal from Kampuchea and the Vietnamese-backed 
of an estimated 240.000 Viet- Heug Samrin regime in Phnom 
nameue troops. It comes against -Penh. 

a background of dramatic Western diplomats we l c o med 
leadership changes in -Hanoi, -the latest moves but dis- 
whteh are expected to herald counted any early break- 
badly needed reforms of the through. Vietnames objections 
economy. It also follows on the sence of -the Pol Pot faction of 
visit to the region in Marehof . continue to-fimu on the pre- 
Mr Eduard Shevardnadze, the the Khmer Rouge, the largest 
Soviet Foreign Minister, whose part of the coalition, now fight- 
country is a key player in any log a guerrilla war from bases 
resolution* of the conflict. in Thailand. Pol Pot is stui 

Dr Moch tar's trip is part of blamed for the massed killings- 
a two-pronged diplomatic initia* of thousands of Kampucheans, 
tive by Asean which will see which prompted Vietnam* 
Thailand's Foreign Minister, occupation in 1978. j 


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Financial Times Saturday May 9 1987 


UK NEWS 


Plans to relax 
farmland control 
are toned down 

BY PAUL CHEESERIGHT, PROPERTY CORRESPONDENT 


PLANS FOR relaxing controls 
over development on agricul- 
tural land have been markedly 
toned down by the Govern- 
ment 

The Department of Environ- 
ment yesterday sent a circular 
to local authorities, giving the 
criteria to be applied in 
evaluating planning appli- 
cations to use farmland for 
n on-agricultural purposes. 

The circular contains signi- 
ficant changes from proposals 
announced in February, and it 
prompted the Council for the 
Preservation of Rural England 
to claim it had won a major 
victory. 

The circular follows decisions 
to keep open rural schools once 
destined for closure and to 
abandon plans for disposal of 
nuclear waste at shallow dumps. 

The measures suggest the 
Government is anxious to attract 
the green vote and to shore up 
its political support in the 
countryside. In preparation for 
next month’s expected general 
election. 

The basic element of the 
Government’s approach to 
countryside planning has been 
that farmland is not necessarily 
best used for farming now 
agricultural surpluses have 
reached embarrassing levels. 


Last February the Govern- 
ment proposed a relaxation of 
planning controls in an effort 
to encourage alternative uses 
for farmland and to boost the 
rural economy. It ran into 
immediate opposition from en- 
vironmental and planning 
groups. 

In its definitive circular, the 
Government sought to meet the 
opposition by specifying the 
quality of agricultural land 
should be taken into account 
when looking at development 
proposals. It also said there 
was a continuing need to pro- 
tect the countryside for its own 
sake, which pleased the CP RE. 

The circular stressed there is 
no change in the scope of plan- 
ning control, leaving individual 
control in handling develop- 
ment planning applications to 
local authorities. 

It also returned to the Minis- 
try of Agriculture a consulta- 
tive role in the planning 
process over larger sections of 
the countryside than would 
have been the case in the Feb- 
ruary proposals. 

The new instructions to local 
authorities concern land out- 
side green belts, national parks 
and areas of outstanding 
natural beauty, where policies 
of conservation remain un- 
changed. 


Winding-up of new 
town bodies agreed 


BY HAZEL DUFFY 

THE GOVERNMENT has re- 
jected pressure in the north- 
east to delay the date for the 
windlng-up of the new town 
development corporations in 
Washington, and Aycliffe and 

pGterl qp_ 

Mr John Patten, minister for 
housing, urban affairs and con- 
struction, told the Commons yes- 
terday that the Corporations 
would be wound up on March 31 
next year. 

His derision follows a round 
of consultations to which he 
agreed last December. During 
them the corporations argued 
that they wanted the date of 
the winding-up delayed so that 
they could continue their job 
creation role. The towns have 
had some success on this score, 
and notably Washington, Tyne 
and Wear, which captured the 
Nissan plant 

The three towns— Aycliffe 
and Peterlee in County Durham 
are run by one development 
corporation— will dispose of 
their remaining assets to the 
private sector as far as possible. 

The Government confirmed 
its intention that E n glish 
Estates should buy the indus- 


trial assets not yet sold. Any 
remaining assets and liabilities 
will be transferred to the Com- 
mission for the New Towns 
after next March. 

Aycliffe and Peterlee, which 
have a combined population of 
nearly 50,000, have to date dis- 
posed of £27 Jm of assets, 
including the town centres of 
both towns. However, demand 
for their Industrial property is 
weak. 

Washington, Tyne and Wear, 
which has a population of 
56,500, has sold assets worth 
£18.7m. Disposal of the town 
centre will prove more difficult 
because of large retail develop- 
ments in adjacent areas. Hous- 
ing in all three towns has 
already been transferred to 
local authorities. 

# The Government yesterday 
approved urban development 
grant totalling £4. 5m towards 
a £15.8m private sector housing 
scheme on part of the former 
Hawthorn Leslie shipyards In 
Sebburn, south Tyneside. 

The sdieme, involving 456 
houses on 29 acres, Is to be 
carried out by Bellway. 


US move in spy book case 


FINANCIAL TIMES REPORTER 

THE GOVERNMENTS attempt 
to silence press reporting of 
the memoirs of Mr Peter 
Wright, a former M25 officer, 
could move to the US courts. It 
was revealed In the High Court 
yesterday. 

Mr John Laws, for Sir 
Michael Havers, the Attorney 
General, said Sir Michael was 
taking advice on what legal 
action could be taken to stop 
further publication of allega- 


tions about Secret Service mis- 
conduct, which have so far 
been syndicated to 400 news- 
papers across the US. 

News of the Government’s 
action was revealed on the 
second day of an attempt by 
The Guardian and The Observer 
newspapers to lift or vary 
injunctions banning them from 
publishing any of Mr Wright’s 
disclosures. 

The hearing was adjourned 
until Monday. 


Caterpillar 
decision 
expected to 
be delayed 

By James Buxton, 

Scottish Correspondent 

THE MANAGEMENT of the 
Caterpillar tractor plant at 
Uddington, near Glasgow, is 
expected to delay for three 
months any decision on the 
sale of the factory. 

A delay of this length 
—which will have to be 
agreed with Caterpillar head- 
quarters In the US —suggests 
the company is unlikely to 
reach an agreement on the 
sale of the factory to Multi 
Purpose All Terrain, a Scot- 
tish company which pro- 
poses to buy the plant and 
build an all-terrain vehicle 
there. 

MPAT wants to move in 
as soon as possible. Cater- 
pillar said yesterday it was 
still negotiating with MPAT. 
MPAT was not available for 

comment. 

Caterpillar had been asked 
to delay a decision by the 
working party that is trying to 
find another occupant for the 
plant The working party in- 
cludes government bodies, 
unions, local authorities, the 
Caterpillar management and 
its workforce, and wants tbe 
company to wait until consul- 
tants have completed a study 
of all possibilities. 

Members of the working 
party yesterday played down 
the chances of a deal between 
MPAT and Caterpillar. They 
said that another manufac- 
turing company had ex- 
pressed an interest in the 
plant 

Last week Sir Monty Fin- 
niston, former chairman of 
British Steel, resigned as 
chairman of MPAT. The 
company's financial adviser, 
Noble and Company of 
Edinburgh, also resigned fol- 
lowing the discovery that 
orders for the vehicle were 
less solid than had been 
thought 

Caterpillar will close the 
Uddington plant by early 
next year. A 14-week sit-in 
by workers ended last 

month. 

Lord Marshall 
re-appointed as 
CEGB chairman 

By David Fbhlock 

LORD MARSHALL, 55, has 
been re-appointed by the 
Government as chairman of 
the Central Electricity 
Generating Board. 

Lord Marshall, a nuclear 
scientist, was appointed 
chairman by Mr Nigel Law- 
son, then Energy Secretary, 
in 1082. 

Previously, he was chair- 
man of the UK Atomic 
Energy Authority, for which 
he had worked since leaving 
Birmingham University. 

Lord Marshall, a Fellow of 
the Royal Society, has been 
widely honoured by tbe scien- 
tific community for his con- 
tributions to fusion physics 
and solid-state physics. He 
was made a life peer in 1985 
for his management of- t he 
electricity supply system 
during the coal strike. 


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Philip Stephens examines the pros and cons of the latest cut in lending charges 

Base rate caution is in the Bank’s interest 

. 1 -I 4 hl Mil 


BEING PUSHED by the finan- 
cial markets into a policy that 
is likely to win you votes in an 
imminent general election must 
be any Chancellor’s dream. 

For Mr Nigel Lawson, yester- 
day’s half-point cut in bank 
base rates marked tbe fourth 
such bout of good fortune in 
just two months. Optimists in 
the City were saying that there 
may be more to come before 
the poll, expected on June II. 

During the past six months 
Britain’s interest rate outlook 
has apparently been trans- 
formed. 

Only last October Mr Lawson 
was fighting to delay tbe in- 
terest rate rise needed to de- 
fend sterling until after the 
Conservative Party conference 
— and then had to struggle to 
hold the increase to a single 
point rather than the two points 
bring sought by the markets. 

Since then rates have come 
down from 11 per cent to 9 
per cent — tbe lowest level 
since 1884 — as foreign inves- 
tors have poured funds into 
sterling. In the process, the 
Bank of England has added 
billions of dollars to its foreign 
currency reserves. 

The tumroond in the Govern- 
ment’s fortunes can be traced 
to three developments: Febru- 
ary’s decision in Paris by the 
Group of Six leading industrial 
nations to seek stability on 
foreign exchange markets; the 
move in the Budget to cut the 
public borrowing target by 
£3bn; and the seemingly im- 
pregnable lead that the Con- 
servatives have established in 
the opinion polls. 

Tbe Paris accord, designed 


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primarily to underpin the 
dollar, has been skillfully 
exploited by the Chancellor to 
provide an anchor for ste r li n g. 

In parallel, the continuing 
weakness of the US currency 
— putting downward pressure 
on interest rates in Japan and 
West Germany — has increased 
sterling's attraction for foreign 
investors. 

The decision to cut the public 
borrowing target — strongly 
urged on the Chancellor by the 
Bank of England — has pro- 
vided the second strand of the 
policy. The confidence effect In 
financial markets was worth 
perhaps half of the reduction 
so far in borrowing costs. 

The seemingly unequivocal 
message of the opinion polls 
has removed much of the risk 
premium demanded by foreign 
investors when there seemed a 
stronger possibility of a Labour 
government 


if tbe immediate reasons for 
foe transformation are fairly 
obvious, answering the question 
of whether it is sustainable 
is less straightforward. 

In coming weeks, ministers 
are certain to make political 
capital out of what is being 
termed a fundamental re- 
appraisal of Britain’s economic 
performance and prospects. 

The authorities’ behaviour 
in the financial markets sug- 
gests that they are less con- 
vinced than the rhetoric might 
suggest 

Yesterday both the Bank and 
the Treasury were insisting that 
their aproach to farther redac- 
tions in borrowing costs would 
be cautious. The Bank's money- 
market operations gave a strong 
signal that those hoping for 
another rapid cut in rates to 
8} per cent would meet fierce 
resistance. 

Fart of that stance reflects the 


Bank's tactics . It does not want 
to put itself into a position 
where it is constantly following 
rather than leading the mar- 
kets. It has learnt from ex- 
perience that in those circum- 
stances a change in market sen- 
timent quickly f orce in- 
terest rates higher. 

In the short term, the 
authorities must be concerned 
that If rates move down too 
quickly an unexpected shift in 
tiie opinion polls during tile 
election campaign could put the 
process Into reverse. 

There are also other, more 
fundamental reasons for cau- 
tion. Most economists believe 
that sterling’s gains against 
other leading currencies this 
year will keep downward pres- 
sure on inflation but the signals 
from the domestic economy axe 
not quite as reassuring. 

The broad measure of the 
money supply, sterling M3, has 


been growing rapidly and will 
be further boosted— temporarily 
at least— by the Bank s Inter- 
vention in foreign nchugu 
markets. House and other 
asset prices are rising strongly, 
while the pace of ean ?!? KS 
growth remains strong. That 
suggests that if inflation is at 
present subdued, it may be far 
from defeated. 

There is also the question of 
whether foreign investors’ pn> 
sent enthusiasm for sterling 
assets assumes that tbe Govera- 
ment will remove most ol the 
exchange-rate risk immediately 
after the election by opting for 
full membership of the E MS . 

Mr Lawson is ha favour of 
im<* a course, but the sign s 
from 10 Downing Street suggest 
that Mrs Thatcher remains to 
be convinced. In recent conver- 
sations she has pointed out that 
had the pound been locked into 
the EMS, last year's welcome 
devaluation against other Euro- 
pean currencies would not have 
been possible. 

Finally, if Britain's economy 
is outperforming most of the 
rest of the industrialised world, 
the resultant strength of 

sterling is likely to have its 
costs. 

The pound’s gains so far tuts 
year have improved the short- 
term outlook for inflation, but 
at the expense of eroding much 
of the competitive advantage 
which flowed from the deprecia- 
tion of last year. 

If that translates much 
slower growth in output, the 
mood of international confi- 
dence in the pound could turn 
out to e a decidely two-edged 
sword. 


Flexible pub 
hours debate 
adjourned 

By Ivor Owen 

A "MODEST relaxation” in 
the licensing laws to permit 
more flexible opening hours for 
pubs in England and Wales was 
again urged by Mr David Wad- 
din gton, junior Home Office 
Minister, in the Commons yes- 
terday. 

He was speaking in a debate 
effectively marking the aban- 
donment of the private mem- 
ber’s measure introduced by 
Mr Allan Stewart, Tory MP for 
Eastwood, designed to enable 
pubs to open for up to 12 hours 
from Monday to Saturday. 

On Mr Stewart’s initiative, 
debate on the bill was . 
adjourned until July 8, with 
MPs on both sides of the House 
indicating that they expect the 
present Parliament to have 
been dissolved well before then 
The minister again cited evi- 
dence provided by more flexible 
licensing hours operating in 
Scotland as justification for the 
view that a similar relaxation in 
England and Wales would not 
lead to any significant increase 
in alcohol-related offences. 

Mr Ali Dubs, a Labour 
spokesman on home affairs, 
suggested that Mr Stewart bad 
been " too ambitious " and that 
a bill permitting more flexibility 
within the existing maximum 
nine-and-a-half opening hours 
might have reached the statute 
book before dissolution. 

Mr Ron Lewis, Labour MP for 
Carlisle, a teetotaller, who is 
not seeking re-election, under- 
lined his fears that any easing 
ot the present licensing restric- 
tions would lead to “an opening 
of the floodgates.” 


Baker stresses the value of universities 


BY PETER RIDDELL, POLITICAL EDITOR 


REASSURANCE about the 
Government’s policy towards 
universities and scientific re- 
search was offered yesterday by 
Mr Kenneth Baker, Education 
Secretary, in the face of con- 
siderable recent criticism. 

Ministers are sensitive to the 
disquiet expressed in the scien- 
tific HTifl higher education com- 
munity about the level of 
government fnndlng, as well as 
the possible loss of support to 
the Alliance In key marginal 


seats such as those in Cam- 
bridge, Oxford, and 

Edinburgh. 

Speaking to the Cambridge 
University Tory Reform Group, 
Mr Baker stressed that the 
Government did not believe uni- 
versities were just about the 
needs of trade and the economy, 
but were valued as “ centres of 
intellectual endeavour ' 

There is a mistaken belief 
that our policies are directed 
solely towards applied know- 


ledge and tile more glamorous 
sciences. That is just not the 
case. We recognise the vital 
place in our universities of 
scholarship and research in the 
humanities and the social 

sciences.” 

He stressed the increase of 
nearly 160,000 in the number of 
students in higher education 
since 1978 and the rise In spend- 
ing in real terms of over 3 per 
cent in the period. The science 
budget had, he said, increased 


by 14 per cent in real terms 
since 1978-80. 

More generally, he highlighted 
the increased support to univer- 
sities from industry, saying 
there was “a long way to go." 

Mr Baker said the Govern- 
ment wanted to build on the 
special combination of public 
funding and institutional inde- 
pendence evolved in Britain, 
urging universities to get more 
of their income from sources 
other than the state. 


Labour wants Guinness report published Counci i mes 


BY OUR POLITICAL EDITOR 

THE LABOUR Party la press- 
ing the Government to publish 
the report of the official inspec- 
tors into the affairs of Guinness, 
the drinks group. 

Mr John Smith, Labour trade 
and industry spokesman, wrote 
yesterday to Mr Paul Channon, 
Trade and Industry Secretary, 
to ask when the report was ex- 
pected. The inspectors were 


appointed" six months ago. 

Mr Smith sought an assurance 
that the report was "near com- 
pletion and ~will ~be available 
within a week or so. ; At the 
very least I would hope that an 
interim report outlining their 
conclusions so for can be pro- 
duced. 

“It would surely be absurd 
lor this Parliament to come to 


an end without having had an 
opportunity to consider a 
report on such a major Issue." 

Mr Smith's letter came after 
Ernest Saunders, former chair- 
man and chief executive of 
Guinness, was charged on 
Thursday with intent to pervert 
tiie course of justice and with 
destroying and faiisfying 
documents. 


Bill to limit public smoking withdrawn 


BY IVOR OWEN 

BRITISH RAIL intends to allo- 
cate only 25 per cent of seats 
to smokers in the future, Mrs 
Edwina Currie, Health Under- 
secretary, told the Commons 
She said this was evidence of 
tbe growing recognition of the 
need to provide smoke-free 
zones when she declined to sup- 
port a private member’s bill to 
limit smoking in public. The 
bill was withdrawn. 

Mrs Currie went beyond 
earlier ministerial statements 
in acknowledging legislative 


restrictions might be needed 
at some time, but did not make 
any specific commitment. 

The final report of Indepen- 
dent Scientific Committee on 
Smoking and Health, the in- 
terim finding ; of which high- 
lighted- the risks to non-smokers 
from inhaling other people's 
smoke, would be published 
later this year. 

Mrs Currie said: “The 

Government will then consider 
whether action is required and, 
if so, what” 


She told Mr Roger Sims, 
Tory MP for Cbislehurst, chief 
sponsor of the Tobacco Smok- 
ing (Public Places) Bill: “If 
my post bag is anything to go 
by, I know you have a great 
deal of public support’’ 

Mr Frank Dobson, Shadow 
Health Minister, refused to 
commit an incoming Labour 
government to introducing a 
similar measure but reaffirmed 
it would impose a ban on the 
advertising and promotion of 
the tobacco products. 


access move 
goes unopposed 

.. By Ivor Owen 

A PRIVATE member's bill 
to require local authorities to 
give more access to personal 
files was given an unopposed 
second reading in (he Lords 
yesterday. 

The blU seeks to allow 
Individuals to inspect manual 
. files which record information 
about them relating to coun- 
cil housing and local welfare 
services. It has already been 
approved by the Commons 
and is expected to become 
law before Parliament Is 
dissolved, if a June election 
Is called. 

Lord Beaverbrook, for the 
Government, said It was 
hoped regulations allowing 
access to such files would be 
r introduced by the end of next 
'year. 


Imperial Foods chief to 
head airports authority 


BY LYNTON McLAIN 

MR JB REM Y MABSH AT.T., rh j pf 

executive of Imperial Foods, a 
Hanson Trust Company, is to be 
the chief executive of BAA, 
formerly the British Airports 
Authority, which is to be 
privatised by the Government 
next month or in July. 

Mr John Moore, Transport 
Secretary, announcing the move, 
said yesterday Mr Marshall 
would take up his appointment 
on June 15. 

The post of chief executive is 
new to BAA and its predecessor 
authority. Mr Moore announced 
in January that Mr John 
Mulkern, BAA managing 
director, would retire from the 
board at the end of thi« month. 


Sir Norman Payne, BAA 
chairman, has executive func- 
tions. The board intends that 
Mr Mnrghai l should take over 
progressively those functions 
until Sir Norman’s retirement 
in three years. 

Mr Marshal joined Hanson 
Trust in 1971 and became a 
director and chief executive of 
Imperial Foods when Hanson 
Trust acquired Imperial in 
1986. 

The Government is to aim its 
safe of shares in BAA at insti- 
tutional and small investors. 
The flotation could be put bade 
by three or four weeks if Mrs 
Thatcher decides to call a 
general election next mont h . 


Investment monitoring 
group in takeover talks 


BY ERIC SHORT 

THE WM COMPANY, one of 
the world’s largest providers 
of investment performance 
measurement services, yester- 
day announced it was holding 
talks with Bankers Trust New 
York Corporation, the eighth 
largest banking group in the 
US, with a view to being 
acquired by it. 

No details ot the deal have 
been revealed. 

The WBf Company was estab- 
lished in 1967 as the computer 
services division of Wood 
Mackenzie, the stockbroking 
firm. It became a separate 
company in 1984, when Wood 
Mackenzie was acquired by Hill 


Samuel, the merchant banking 
group. The equity of the re- 
named company is held by com- 
pany executives and various 
former Wood Mackenzie part- 
ners. 

However, Mr Dugald Eadie, 
chief executive of WM Com- 
pany, said the deal with 
Bankers Trust would be a cash 
arrangement with a loan element 
not involving equity. The price 
would be far less than the £ 20 m 
paid for Wood Mackenzie. 

Investment performance 
measurement services is the 
group's largest function, but 
WM has been expanding its 
valuation and custodian services 
to clients. 


Ford to raise car prices 2.1% on Monday 


BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT 


LEADING car producers are to 
put up prices earlier than 
expected and at a much greater 
pace than the level of inflation. 

The move comes at a time 
when new car sales have 
weakened considerably from 
record levels reached In the 
first quarter. 

Ford, the market leader, 
said yesterday its prices would 
go up by an average of 2.1 per 
cent on Monday following a 3-5 
per cent rise in January -which 
was followed by rivals Austin 
Rover and General Motors, the 
Vauxhall-Opel group. 

The car makers usually 
increase prices every six months, 
but last weekend Austin Rover 
led the way in the current round 
with a 2.4 per cent rise. GM is 
expected to folow the example. 

Ford and GM said yesterday 


the substantial rise in the 
D-Mark against the pound was 
stm causing them difficulties. 
Ford also noted it had to fund 
Its £L46bn, five-year investment 
programme. 

Austin Rover said it wanted 
to avoid putting up prices close 
to the August sales peak— thus 
indicating it might wait until 
September before Tnairin^ 
another increase. 

The Society of Motor Manufac- 
turers and Traders reported 
yesterday that new car registra- 
tions in April fell by 9.73 per 
cent to 153,587 as compared with 
the same month last year. 

However, sales for the first 
four months of this year were 
still L75 per cent ahead com- 
pared with last year at 680,859. 

Ford continued to gain 
ground last month after the 


introduction of the revised 
Sierra range and the launch Of 
a booted version, the Sapphire. 
Its share improved from 25.55 
per cent in April last year to 
30.59 per cent last month. For 
tiie year so far, Ford accounted 
for 28.33 per cent of total sales 
against 26.05 per cent last year. 

In contrast, GM fell. Last 
month it commanded a share 
of 1202 per cent, well down 
from 154» per . cent in April 
1986. For the year so far. Gif’s 
share has fallen from 16.49 per 
cent to 14.47 per cent- fl 
Austin Rover admitted being 
disappointed with its results 
so far, paritieularly as it has 
revised and sharpened its 
marketing and advertising 
approach. 

In April Austin Rover’s share 


was down from 16.34 per cent 
to 15J52 per cent and, for the 
year to date, it slipped from 
18.79 per cent to 16JJ7 per cent. 

The importers’ share of the 
total market fell to just below 
50 per cent in April compared 
with nearly 57 per cent in the 
same month last year. In the 
first four months, imports 
accounted for 4928 per cent of 
sales against 55.09 per cent last 
year. 

April’s top 10 best-selling cars 
were: Ford Escort (15,725 sold); 
Ford Fiesta (10,878); Ford 
Sierra (10,824); Rover Metro 
(8,413); Vamrhall Cavalier 
(6,966); Ford Orion (6,689); 
Vauxhall Astra (5,868); Rover 
200-series (4,580); Rover Jfon- 
tego (4^55); Peugeot 205 
(3,683), 


Ferry inquiry 
calls for review 
of procedure 

financial Times Reporter 
TOWNSEND THORESEN is 
still operating a similar system 
to that which contributed to 
toe capsize of the Herald of 
Free Enterprise ferry, the 
disaster inquiry heard yester- 
day. 

Chairman Mr Justice Sheen 
aid there was still no instruc- 
tion for a deck officer to en- 
are the bow doors were closed. 
A memo Issued 17 days after 
the disaster by Mr Peter Ford, 
chairman of Townsend Thore- 
sen was “unsatisfactory" 

A sister ship of the Herald of 
free Enterprise is expected to 
be used at Zeebrugge tomorrow 
to reconstruct some of the 
«jcamstances of the disaster in 
?“ rl Y 200 people died. 

SPintof Free Enterprise, 
which win not be carrying 
S“H >Br S J? 31 ** similarly 
“? trimmed to provide 
evidence for the inquiry. 


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Raymond Snoddy reports on a success story for a US publisher 

Random books a stake in Britain 


WHEN. Mr Si Newhouse, the 
American business tycoon, was 
wondering whether or hot to 
bay Random House, the TJS pub- 
listing company, he asked: 
“ Can it be replicated?” When, 
told the answer was “ No,” he 
bought it. 

The same could be said even 
more emphatically for Mr New-, 
house and Random’s latest 
purchase, Chatto, Virago, Bod- 
ley Head and' Jonathan Cape, 
one of Britain’s leading literary 
publishing groups. 

Mr Newhouse arrived in Lon- 
don three weeks ago at the bead 
of a delegation to buy the 
group. With it came the com- 
bined experience of nearly 250 
years of British publishing and 
authors who range from James 
Joyce and Virginia Woolf to 
WKUiam Faulkner. 

Mr. Graham C. Greene, exeu- 
tive chairman of CVBC, and 
Mr Tom MaschAer, chairman of 
Cape and a director of CVBC, 
went to the meeting at the 
Connaught Hotel wth no in- 
tention of selling the company. 

“X just felt the . climate was . 
changing and that it would be 
worth thinking about some sort 
. of transAtlantic association. I 
thought it would be worth ex- 
ploring the possibility of a 
very modest investment in the 
group,” Mr Green, nephew of 
author Graham Greene, said - 
yesterday. 

After a day of talking, Mr 
Green and Mr Mascfcler left 
the hotel having agreed on prin- 
ciple to sell. the 76 per cent of 
the shares of the group they 
control. 

Neither side win divulge how 
much the deal is worth, but it 
is believed the price is in the 
region of £20m. If true, this 
is a high price to pay for a 
company with a turnover of 
about £17m which turned in a 
modest loss last year and whose 
hopes for this year do not ex- 
tend beyond an equally modest 
profit. 

Virago, the publishing com- 
pany specialising in women’s 
novels, will remain part of the 
CVBC group- for only a short 
time. A management buyout 
agreed last month will go ahead. 





although Virago will keep sales 
and distribution links with the 
company. 

To Mr Ed Victor, a literary 
agent who has worked for both 
companies, the deal is “ about 
as perfect a fit as it is possible 
to imagine of a buyer and a 
seller” 

He says: “The irony is that 
the federation of companies was 
put together to prevent take- 
over, especially by the Ameri- 
cans.” 

There are highly specific 
aspects to the deal, such as the 
long and close relations with 
many authors is common be- 
tween tiie two organisations. 
But the Random House pur- 
chase is also an example of the 
increasingly Interna tional 
nature of publishing and a cer- 
tain squeeze on independent, 
middle-sized British publishing 
companies. 

Bids are Increasingly placed 
on popular books for rights to 
the English-speaking world. - 

Mr Greene says: “This will 
give us the ability to bid for 
the best books on an equal basis 
with the bigger publishers.” 

Much to his surprise ' Mr 
Greene found tirnwif on the 
front pages recently when his 
unde wrote to The Times 
threatening to leave the group 
unless there were changes in 


administration. Letters are 
going out to aU authors, 
including Graham Greene, 
explaining the decision to sell. 

Transatlantic links are getting 
stronger in the book world and, 
to a considerable extent, it is a 
two-way process. 

Penguin, part of Pearson, 
which publishes the Financial 
Times, owns the New American 
Library and Viking in the US. 
Bertlesmann, the West German 
publishing group, owns both 
Bantam and Doubleday, and Mr 
Sonny Mehta, formerly of Pan' 
now runs Alfred A. Knopf, a 
Random House company. 

There has been the rustle of 
takeovers in the British indus- 
try — Beinemann, Seeker and 
Paul Haznlyn all coming under 
the Octopus banner — but Mr 
Clive Bradley, director of the 
Publishers’ Association, believes 
the industry is in reasonable 
heart. 

“ When publishers meet they 
always say they are in per- 
petual crisis. . They are like 
farmers saying ’Woe. Woe.’ 
It's not true. Sales have gone 
up steadily,” Mr Bradley said. 

Sales of UK publishers are 
running at about £lBbn a year, 
with, exports accounting for 35 
per cent. The industry is grow- 
ing at about 10 per emit annu- 
ally. 


Mr Bradley believes the 
Random House-CVBC deal is 
“not an unattractive one” for 
the British publisher. “ If you 
have to merge with someone, 
then I think it makes more 
sense to merge with a US com- 
pany than another British one. 

CVBC is likely to have im- 
proved access to the North 
American market for its titles 
and Random will inherit access 
to Commonwealth countries, 
particularly Australia and New 
Zealand. 

Yesterday, it appeared that 
little apart from ownership had 
changed at the two early 18th 
Century . houses in London's 
Bedford Square which form the 
joint headquarters of the four 
companies. 

As he looked again at the 
view of the square he has 
enjoyed for 25 years, Mr 
Greene said he was convinced 
that Random was taking a long- 
term view of its British Invest- 
ment - 

The best evidence of that is 
that both Mr Greene and Mr 
Maschler will be able to enjoy 
the view for another 10 years — 
each has been given a contract 
for that period as well as a 
place on the Random House 
board. 


Liffe 
trading 
at record 

By Alexander fficaU 

VOLUME ON the London Inter- 
national . Financial-, fixtures 
Exchange set a record in April 
for the second successive months 
with U6m futures and options 
contracts traded, compared with 
1.15m in March. 

Although the exchange con- 
tinued to be dominated by its 
contracts based on long-term 
UK Government bonds, trading 
in futures based on US interest 
rates increased. 

Long gilt futures volume 
dropped 12 per cent in April to 
612,890 contracts worth a total 
of £30.6bn. However, in the first 
four months of the year turn- 
over was up 272 per cent com- 
pared with the same period last 
year. This reflects tiie expansion 
and reform of the gilts market 
Futures on three-month Euro- 
dollar deposits saw an 82 per 
cent rise in volume in April to 
1929,775 contracts, worth a total 
of $192.7bn, and in the year to 
date the volume was up 55 per 
cent Trading in US Treasury 
bond futures rose 110 per cent 
to 150,740 contracts bat was 80 
per cent down in the first four 
months of the year. 


Shell chief says price of oil 
likely to settle at present level 


BY MAX WILKINSON. RESOURCES EDITOR' 


Societies body 
plans to update 
its structure 

By Hugo Down 

THE Building Societies Asso- 
ciation, the industry’s trade 
body, is proposing to modernise 
its structure. . 

The proposals, backed by the 
association's council, its policy- 
making arm, are to be put to 
its annual meeting later this 
month. They recognise that the 
industry has become more com- 
petitive and societies no longer 
need to be protected by the 
association. 

The three main proposals are 
that the association should con- 
centrate on lobbying instead of 
promoting prudence in socie- 
ties; that it should take more 
Initiative in implementing 
policy, with Mr Mark Boleat 
its secretary -general, being 
promoted to the newt post of 
director-general; and. that the 
size of the council be reduced 
from 33 to a maximum of 24, 
with power being concentrated 
more in the *■*"<*» of the largest 
societies. 


OIL PRICES seem likely to 
stabilise at about present levels, 
Mr 'Pater 'Holmes, ghal nnin of 
Shell Transport and -Trading, 
said in London yesterday^ 

- He told a seminar of ofl. eco- 
nomists that, after last year's 
collapse in prices, demand for 
oil had risen by 800,000 barrels 
per day, while production from 
countries outside the Organis- 
ation of Petroleum - Exporting 
Countries, notably the US, had 
fallen by about 800,000 barrels 
per day. 

This meant that the world 
was becoming more reliant on 
Opec oil, and the trend would 
continue unless large reserves 
.were discovered. 

He expected the demand for 


Opec crude oil to rise to about 
18.4m barrels per day next year, 
compared’ with 164m barrels 
per day this ’year.’ * 

Mr HolmerVht «R seems. 
theredbreT'that Opec is remerg- 
ing from tiie narrows of 1986 
and may Portly sail into more 
open waters. With demand at 
a higher level and non-Opec 
production peaking, the call on 
Opec production is likely to in- 
crease year by year.” 

Barring accidents, the in- 
crease could be about lm 
barrels per day in coming years. 

It r emain ed to be seen 
whether Opec could keep its 
collective nerve in times of 
stress, hut it was equally impor- 
tant for the world to know what 
Opec would do when the tide 


started to ran strongly in its 
favour. 

With hindsight, he said it was 
.clear that Opec had made a mis- 
take in pushing the price np 
too far in 1979-80, when de- 
- mand for its crude was strong. 
The high prices which followed 
in tiie early 1980s reduced oil 
demand and encouraged the 
development of high-cost alter- 
natives, to the detriment of 
Opec. 

It was still uncertain if there 
was an oil price which could 
keep the world economy on 
course for expansion and. meet 
the interests of producers as 
weH He believed that such a 
price would be in the range 
of 315 (£8.90) to 325 per barrel, 
rising with inflation. 


Aid for regional product design 


BY FEONA McEWAN 

AN inner city initiative to 
help regional companies bene- 
fit from top flight product 
design is to be given film by 
the Government. 

The Department of Trade 
and Industry wtQ establish 
three regional design centra: 
in a one-year pilot scheme in 
premises donated by tiie 
private sector. These wall 
operate as “ marriage brokers ” 
between selected local com- 
panies and appropriate product 
designers. The centres will be 
managed by the Design 
CoundL 

The first two, expected to 
start next month, will be in 
Warrington, Cheshire, in 
premises donated by the Weir 


Group, and the Cathcart area 
of Glasgow, in premises donated 
by the CoioroH Group. 

Mr John Butcher industry 
undersecretary, said the third 
centre, yet to be announced, 
would be somewhere east of the 
Pennine®. 

Mr Butcher, announcing the 
scheme, said it was to help 
companies- identify and pursue 
market-led opportunities to 
give th e i r business prospects a 
boost 

It is anticipated up to 25 local 
companies will take advantage 
of the design assistance in each 
region. Marketing and financial 
advice is also being offered. 

The project Is a direct result 
of a research project conducted 


lost year by Michael Peters 
Group, a design consultancy, in 
Middlesbrough. Mr Butcher 
hinted the pilot scheme might 
be considered for inclusion in 
traditional regional policy if it 
proved successful. 

The scheme differs from the 
funded consultancy scheme, the 
Government's other design 
initiative, where medium- and 
small-sized companies gain 15 
days of subsidised design con- 
sultancy but only go part way 
along the design process. 

The new hands-on scheme 
offers a more sustained approach 
with the aim of seeing a product 
much farther down the process, 
if possible, from conception 
through to production. 


General manager tiers ‘benefit NHS’ 


BY DAVID BUNDLE, 

THE CREATION of general 
management tiers in the 
National Health Service Is pro- 
ducing benfits, according to the 
National Association of Health 
Authorities. 

In evidence to the Commons 
Social Services Select Commit- 
tee published yesterday, the 
association said general mana- 
gers were bringing issues into 
sharper focus, addressing pro- 
blems’ more logically' and 
reaching ' decisions more 
rapidly. 

General managemen t has 


been introduced to tiie NHS 
during the past three years on 
the recommendation of a 
report by Sir Roy Griffiths, 
managing director of J. Salns- 
bury, tiie supermarket chain. 
Previously, management was 
departmental and decision- 
making was by consensus. 

. The association said adminis- 
tration had been streamlined, 
the provision information had 
been improved, resources were 
being used more efficiently and 
professional rivalry had been 
reduced. 


The association did,' how- 
ever, fear greater NHS centra- 
lisation. It said the evolution 
of topto-bottom line manage- 
ment could weaken The influ- 
ence of health authorities, the 
potential of which was sot being 
fully exploited. 

The association welcomed 
the introduction of individual 
performance reviews for NHS 
general managers and 
advocated it being extended to 
other staff. 


TODAY: Mr Kenenth Baker. 
Education Secretary, speaks at 
Guild of British Newspaper. 
Editors spring v conference 
dinner. Cardiff, 

TOMORROW: Mrs Margaret 

Thatcher, Prime Minister, 
meets- Cabinet ministers at 
Chequers. 

MONDAY: Credit business tor 
March. Final figures tor. 
March retail sales. Three 
Civil Service union con- 
ferences open: IPCS at Harro- 
gate; CPSA at Blackpool^ 
SCFS at Bournemouth. Basis 
of allocation of Rolls-Royce 
Shares announced. European 
Parliament session opens. 


ECONOMIC DIARY 


Strasbourg (to May 15). EC 
finance minis ters meet; . Brus- 
sels, on budget financing, 
TUESDAY: April provisional 
producer price index 
numbers. ' 

WEDNESDAY: Sir Geoffrey 
' Howe. Foreign Secretary, and 
- Mr George Younger, Defence . 

. Secretary, speak at Scottish 
Conservatives' annual con- 
ference, Perth. 

THURSDAY: Provisional figures 


of vehicle production for 
April. Labour market stati- 
stics: unemployment and 

unfilled vacancies (April- 
provisional); average earnings 
indices. (March-provisional ) ; 
employment hours, pro- 
ductivity and unit wage costs; 
industrial disputes. Financing 
of the' CGBR (first quarter). 
UK banking sector statistics 
(first quarter). Money stock 
(first quarter). Mr Nigel Law- 


son. Chancellor of the 
Exchequer, speaks to Scottish 

- Conservatives, Perth. -Sir 
Geoffrey Howe starts two-day 
’ visit to Switzerland. EC Edu- 
cation Ministers meet. 
Brussels. 

FRIDAY: Tax and price index 
for April, Usable steel pro- 
duction (April). Retail prices 
index for April. Mr John 
Moore, Transport Secretary. 
Mr Malcolm Rifkind, Scot- 
tish Secretary, and Mrs 
Thatcher address Scottish 
Conservative rally, Perth. EC 
public health ministers meet, 
Brussels. 


Engineering 
employers 
move on job 
flexibility 

By David Brindla and Maui Dab 

PROSPECTS OF an agreement 
on job flexibility and a shorter 
working week in the engineer- 
ing industry improved yester- 
day after the employers tabled 
fresh proposals. 

On the insistence of the 
unions involved in the protrac- 
ted negotiations, the Engineer- 
ing Employers Federation put 
forward a revised document on 
the planned provisions for 
flexible working practices. 

It appeared last night that 
the move had largely overcome 
the unions’ objections to earlier 
proposals on flexible working 
time. However, it was unclear 
whether the employers had 
managed to meet the unions’ 
other main reservation — on 
the proposed simplification of 
collective bargaining. 

Some onions have been con- 
cerned that this simplification 
would exclude them from plant- 
level bargaining and would 
clear the way for the Amal- 
gamated Engineering Union to 
conclude single-union deals. 

Again on the unions’ insist- 
ence. the federation yesterday 
put forward a fresh document 
on the collective bargaining 
aspect of the package. The 
document is expected to be 
discussed by the unions at a 
meeting next week. 

The unions expect to have a 
final version of the package 
ready in time for the annual 
meeting on June 23 of the 
Confederation of Shipbuilding 
and Engineering Unions. The 
proposals would include a cut 
in the working week from 39 
hours to 37.5 hours. 

• The AEU is launching an 
initiative which will involve 
110,000 of its members in a 
project to upgrade their skills 
for advanced manufacturing 
techniques. 

The union will mail pamph- 
lets and questionnaires to 
members in the West Midlands, 
south Wales and east Scotland 
seeking information on their 
training needs. In return, they 
will be given details of local 
courses, venues and costs. 

The service will also be 
available to the public through 
a computer-linked network of 
video screens which will dis- 
play the latest information on 
training at Jobcentres, work- 
places and AEU offices. 

The pilot project, called 
Training Access Point, will be 
launched in Birmingham . on 
Monday by the AEU and the 
Manpower Services Commis- 
sion, which is providing funds 
and equipment 


Unions must lift efforts in 
new towns says Wi llis 


BY PHILIP BASSETT, LABOUR EDITOR 


TRADE UNIONS must try to 
increase their organisation in 
new town areas where there is 
employment growth. Mr 
Norman Willis. TUC general 
secretary, said yesterday. 

Mr Willis was speaking after 

opening a unique recruitment 
drive in the . largely non- 
uniooised new town of Milton 
Keynes. 

The Milton Keynes Trade 
Union Council is holding a two- 
day exhibition in the shopping 
centre to try to increase the low 
levels of union membership in 
the area. 

The general secretary’s 
presence at the event is a testa- 
ment to the increasing emphasis 
being placed by several unions 
on the recruitment and reten- 
tion of members at a time when 
non-unionism is growing. 

Mr Willis said he was con- 
scious that Milton Keynes was 
“in many ways the epitome of 


the prosperous south-east” but 
pointed out that even in such 
a growth area unemployment 
was higher i\in the south-east 
average. Many unskilled and 
semi-skilled workers earned 

low pay and local companies 

were complaining that they 
could not attract the skilled 
workers they needed. 

Some unions were ignoring 
non-unionism in favour of self- 
interest and possible member- 
ship growth: “There are too 
many people not in trade 
unions for the trade union 
movement to spend its time 
arguing about who organises 

whom.” 

Speaking later, he acknow- 
ledged that the geographical 
organisation of many unions 
was becoming mismatched with 
changing patterns of employ- 
ment dispersal. 

Mr Willis said the problems 
of recruiting in areas of em- 


ployment growth, such as new 
towns included: 

• Moving resources from areas 
of declining employment, where 
many unions had offices, to 
areas where unions tended not 
to be based, such as Milion 
Keynes. 

• Trying to change from areas 
where trade unionism was an 
important part of work culture 
to those where it was not 

• Devising strategies to over- 
come the problems of gaining 
access to non-union employees 
to try to win them into member- 
ship. 

Mr Willis added that the 
the growth of small businesses 
in such towns as Milton 
Keynes created difficulties for 
trade union organisation, but 
such difficulties had been over- 
come before and would be 
again. 

The Milton Keynes attitude 
Page 7 


Civil servants plan June action 


BY DAVID BRINDLE, LABOUR CORRESPONDENT 


LEADERS of the SCPS civil 
servants’ union yesterday 
backed a plan for a two-day 
national strike in the week 
thought likely to be chosen for 
a general election. 

The scheme was being dis- 
cussed last night by leaders of 
the sister CPSA union. How- 
ever, some CPSA leaders were 
arguing that the union should 
stick to its original plan to 
ballot members on an indefinite 
national stoppage. 

The unions, together repre- 
senting 250.000 civil servants, 
have been divided on how to 
carry forward their pay dispute 
at the end of the present series 
of regional strikes over an offer 
costed by the Teasury at 4.6 
per cent. 


The SCPS policy, endorsed 
yesterday by the union’s execu- 
tive council and due to be put 
to the union's annual confer- 
ence in Bournemouth on Mon- 
day, calls for a ballot on a two- 
day national strike in the week 
beginning June 8, followed by 
a three-week series of regional 
stoppages. 

Mr Leslie Christie. SCPS 
general secretary, denied that 
the proposed national strike 
was timed to coincide with a 
possible general election on 
June 11. It was, he said, simply 
“the first opportunity to stage 
the action.” 

Mr Christie said his executive 
did not feel it was the right 
time to move for an indefinite 
national strike, particularly as 


Nipsa, the Northern Ireland 
civil servants’ union, which is 
taking action alongside the 
CPSA and SCPS. had also 
favoured continued selective 
action. 

Whatever the decision of the 
CPSA's national executive com- 
mittee, the union's left-domi- 
nated conference could support 
a call for an indefinite strike. 
The conference, in Blackpool, is 
also due to discuss the issue 
on Monday. 

Further, the right-led execu- 
tive may change its political 
complexion if, as expected, the 
union's Broad Left faction — in- 
cluding Militant Tendency sup- 
porters — makes gains in elec- 
tions to be declared next week. 


Minister welcomes worker buy-out 


BY OUR LABOUR CORRESPONDENT 


THE GOVERNMENT yester- 
day gave enthusiastic endorse- 
ment to worker buy-outs of 
companies through employee 
share ownership schemes. 

Giving the go-ahead for such 
a scheme at the Hampshire- 
based Provincial Bus Company, 
Mr David Mitchell. Transport 
Minister, said: “ This is a 
splendid example of true 
employee participation — true 
Industrial democracy — and I am 
delighted to be able to approve 
it” 

The National Bus Company 
says the sale of its former sub- 
sidiary is the first instance of a 


state-owned utility being sold 
to its employees on an equal- 
ownership basis. 

Mr Rodney Lund, NBC 
chairman, said he hoped to see 
further worker buy-outs of 
some of the remaining 35 or 
so subsidiaries. “This is very 
much in the spirit of the 
Transport Act; it is what it 
was about” 

A total of 189 of the em- 
ployees of Provincial, being 
renamed People’s Provincial 
Buses, each invested £750. 
Their combined stake of more 
than £140,000 will trigger lend- 
ing from Barclays Bank and 


Unity Trust, the trade union 
financial institution, to set up 
an employee share ownership 
scheme trust 

All present and future 
employees of the company will 
be eligible £or shares in the 
trust designed by Unity Trust 
and its advisers on a US model, 
with the trust having first 
option to buy back the shares 
to ensure a continuum. 

This is the second such 
scheme to be launched in the 
UK on the Unity Trust pattern. 
The first, at Roadchef, the 
motorway service area operator, 
did not involve an initial invest- 
ment by employees. 


Tesco PLC 
increased and 

final offer 

for Hillards pic 

Value of Tesco share offer 

393p 

The offer is final and will not be extended* If you are in any doubt as to how to 
accept please telephone County Ltd: on 01-638 6000 and ask for the Tesco Helpline. 

Offer closes 1.00 p.m. Friday 15th May. 

THBADVBniSW&tf SFUBUSHH>B7 COUNTY IMfTfflONB&iAlFOFTEGO PIC B Ik* Diwuoisoi Tara PIC hwe total eireaKwijiB com to mm* Thai Ihe 
befe gated herein sratrveacdsccutfeOTdaadi of rt» R«dofs wsoepb responsiSly oeconinoS' B Ttaw*»Oitta stare offered SpjpitbaMd on the Tesco 

rfi or o i» fcnoi534paHpnion8»hMey 19B7. 

’■ Tte rig** k wervad to naaesa onetfor uteid ti» hcremed Oifaf riaid a cospaMfm stuatton arise ar should tin Pbnol on Ttio-owrs and Ma^ens) ogres. 
B^^bBCorasofsdeda^TOttftferd ano oaetian c e s , the share ofer (but nartteCcshAtamcfrwl wt reman oponfafocca^anaforna tes than Mdaysafer 

tedotoMwHeh it wauU dHwiwbb haw «pfred. 


, ..... '.-..> 2 *.' 








Financial Times Saturday May 9 19ST 


FINANCIAL TIMES 

BRACKEN HOUSE, CANNON STREET, LONDON EC4P48Y 
Telegrams: Fmantimo, London PS4,Tetex: 8954871 
Telephone: 01-248 8000 


Saturday May 9 1987 


A good box 
to be in 


THE PRIME Minister is boxed 
in, of coarse. It has been 
obvious for some weeks that if 
she decided not to seek a 
general election next month, 
she would look extremely silly 
or, to use her own word, "frit.” 
But it is not a bad box to be 
in. 


The local election results 
confirm it; so do the latest cuts 
in interest rates — the fourth, 
incidentally, this year — with 
the probability of a further cut 
in mortgage rates to come. At 
present, almost everything 
seems to be going Mrs 
Thatcher's way. 

There were no local elections 
in Scotland or in London, and 

the turn-out in local polls is 
invariably lower than in gen- 
eral elections, so one has to 
be careful about extrapolating 
the results from the small stage 
to the large. Nevertheless, one 
conclusion will be hard to dis- 
pute. It is that the Tories are 
in just about as strong a posi- 
tion as they were before the 
general election of 1983, and 
this time without having to 
rely on the Falklands factor to 
help them. Not even the oppo- 
sition leaders have denied that 
the Tories did well. 

The results are, in fact, fairly 
dose to the pattern of recent 
public opinion polls. The Con- 
servatives are up around the 40 
per cent level — sufficient, if 
they can just secure the extra 
percentage point or two in the 
final push, to give them a com- 
fortable overall majority in the 
House of Commons. The 
Labour Party and the Alliance 
continue to vie for second 
place, though the Alliance must 
be feeling considerably happier 
than Labour this weekend. 

Confidence boost 

Labour has been on a down- 
ward track since the party con- 
ference season last autumn. It 
fared disastrously in the Parli- 
amentary by-election In Green- 
wich in February and, while 
nothing In this week's local re- 
sults was as bad as that, it 
hardly looks like a party about 
to take off again. Indeed, when 
so many of its more intellec- 
tual supporters have already 
started talking about political 
realignment and the need for 
proportional representation 
after the election, morale 
among the stalwarts can 
scarcely be high. Mr Neil Kin- 
nock must find some of his 
troops in faint heart 

The Alliance achieved Its 
target of net gains of over 400 
seats, which is always a boost 
for confidence. Yet there has 
always been a difference 
between the Alliance — and 
before that the Liberal — per- 
formance in local and by- 
elections and Its showing in 
general elections. The Alliance 


is also now old enough to 
experience losses as well as 
gains. It lost part of the Isle of 
Wight and did not win Liver* 
pool where, for all the tur- 
bulence of recent years. Labour 
came back on a relatively high 
turn-out 

There were considerable 
regional variations and sur- 
prises. The most striking, how- 
ever, were in the Tories' 
favour. After the years of 
unemployment and the decline 
of manufacturing industry, it 
appears that the Midlands are 
still prepared to give the Con- 
servatives at least the benefit 
of the doubt and may be swing- 
ing their way. The most 
plausible explanation is that 
skilled workers, who first 
moved to the Tories in signi- 
ficant numbers in 1979, have 
now decisively turned their 
back on Labour. They have 
little time for the Alliance and 
have not even used it as a 
stepping-stone. 

Votes conundrum 

Yet if Mrs Thatcher can con- 
tinue to welcome converts from 
the Labour Party, she must 
have some concern about defec- 
tions within her old established 
ranks. She wins the votes of 
skilled workers from Labour, 
but is in danger of losing some 
of the higher-educated voters 
to the Alliance. A strange 
transformation is going on: the 
Tories may be becoming the 
people's party while the Alli- 
ance and the SDP in particular, 
represents those who would 
have once regarded themselves 
as Whigs. Labour's essential 
appeal to the unemployed, the 
poor and the otherwise dis- 
advantaged could only have 
taken off if there had been sup- 
port from the "haves’* as well 
as the "have nets." It does not 
seem to have been forthcoming. 

The conundrum is whether 
the Labour and Alliance votes 
should be added together to 
demonstrate that there is an 
anti-Conserv&tive majority — 
somewhere in the region of 
60:49— in the country, or 
whether the figures should be 
more properly looked at an- 
other way round. That way 
they show an anti-Labour vote 
of 70:30. Either way, however, 
for the time being they benefit 
the Tories. Labour and the 
Alliance continue to fight each 
other at least afi much as they 
fight the Government. It is too 
late to change that now. 

So June 11 it must be, or 
thereabouts. The Conservatives 
showed themselves in 1983 to 
be very good at clearing their 
desks for a premature election. 
They were rather less good at 
preparing their desks for the 
next term. The test will be 
whether they have learned that 
lesson. 


BRITAIN’S ELECTIONS 

The battle Is 
on, the 

future in doubt 


GAINS 


iseatsfct local aullMUy ataction# 


By Peter Riddell, Political Editor 


M RS THATCHER and her 
senior advisers have 
little real freedom of 
choice when they meet at 
Chequers tomorrow to discuss 
the general election date. 

Even before Thursday's local 
elections they had become 
boxed in to June, almost 
certainly the 11th. The results 
have removed any final doubts. 
Any other decision now would 
look like dithering. 

That does not mean that the 
outcome of the election is a 
foregone conclusion. The Tories 
will clearly start as favourites 
to re&ain an overall Commons 
majority. Yet for all the em- 
phasis by Norman Tebbit, the 
Conservative chairman, on the 
similar ities with the party's 
triumph in 1983, there are im- 
portant differences, not all in 
the Tories’ favour. 

There is no question, how- 
ever, that recent opinion polls 
and Thursday's results have 
fulfilled the Tories* pre-condi- 
tions for a general election— a 
share of the vote of at least 
40 per cent (the minimum level 
to be sure of an overall Com- 


that Tory support is around 42 
per cent. Labour is 31 to 32 per 
cent, and the Alliance is at 24 to 
25 per cent. Although the Con- 
servative rating has 
strengthened during the spring, 
the key development, as in 1983, 
has been the split in opposition 
support with the Alliance gam- 
ing at Labour's expense. 

The message of the polls has 
been reinforced by Thursday's 
results. Estimate^ of overall 
votes cast put the Tories at 
around 39 to 40 per cent. Labour 
at 31 or so per emit and the 
Alliance on 27 to 28 per cent. 
This is good news for the Tories 
since Labour normally performs 
bettor in local than national 
contests, often by a margin of 

3 to 4 percentage points. 

At first sight the position 
is comparable with May 1983. 
This week, the Tories virtually 
maintained their position in 
seats last fought in 19S3, on a 
generally increased turnout, 
but Labour fell back by nearly 

4 percentage points, and the 
Altiance gained five points. 

The similarities should not; 
however, be exaggerated. The 




46 per cent range. But most 
significant of the Alliance's 
standing, bo& in local contests 
and in opinion polls, is higher 
than before and it wifl prob- 
ably start the general election 
campaign at least four to five 
points higher than in 1983. 

There are also problems 
about extrapolating national 
opinion palls and local results. 
This works both ways for the 
Tories. The long-establisfced 
differences in voting behaviour 
between local and na ti onal 
contests means that fax June 
the Conservatives could do 
even better than on Thursday 
in some places. On the ether 
hand, both Labour and the 
Alliance did better in some of 
their key target pari lament ary 
seats than the national figures 
suggest 

That said, the overall results 
were undoubtedly bad news 
for Labour, particularly in the 
west and east Midlands where, 
on this basis, it might lose 
parliamentary seats compared 
even with the 1983 general 
election result As local party 
spokesmen admitted, the rows 



over Labour and the Alliance lead this time has not been as 
clearly in third place. long-established as four years 

Despite variations, an average ago. In May 1983 Tory support 
of the surveys suggests in the polls was in the 45 to 


"loony left” in London were 
a handicap among traditional 
working-class supporters. 
Yesterday, however, Mr Bryan 


1084 


Gould, the party's campaign co- 
ordinator, claimed that Labour 
had improved its position by 
nine points compared with the 
1983 general election in 17 key 
target seats. But it would only 
have won 11 on the basis of 
Thursday's figures, including 
somewhat improbable ones like 
Dr David Owen's at Plymouth 
Devonport. 

The discrepancy between 
national and local trends is 
shown most dearly with the 
Alliance, and reflects better 
local organisation since 1983 
and the policy of concentrating 
resources in target seats. 

Initial computer projections 
suggested that the Alliance 


sugiu. 01117 wovae na muuua 

of MPs by half a dozen from 
its present 27. However, even 
on the basis of incomplete 
results. Alliance leaders were 


1988 


1988 


1987 " 


claiming to have won the 
largest number of votes in over 
20 additional seats, and to have 
come close in many others. 
Most are Tozy held, like 
Southend West, Cardiff Central 
an d Chelmsford, but some are 
Labour, like Blyth Valley, and 
two i.n IivexpooL 
The key question Is how far 
there will be a repeat of the 
1983 campaign when Labour 
support felT bade sharply, the 
-Tories slipped back slightly, 
and the Alliance advanced 
strongly. The Alliance may not 
the national boost from 
the publicity of the campaign 
than it did in 1983 since it is 
starting from a higher base 


ttua UCU6A Aawwu moii *^*'*“* 

Labour leaders fairly argued 
yesterday thatthe party la now 
much. better organised 
nationally than In 1983. 


These points are. however, 
only qualifications, rather than 
refutations, of underlying Con- 
servative confidence. Even if 
Labour and the Alliance do well 
in some of their target seats. 
It might be partly at each other’s 
expense, and might still leave 
the Tories with an overall Com- 
mons majority- Yet the possi- 
bility of a hung parliament 
without such a dearcut result 
cannot yet be ruled out. 

If there wil be more uncer- 
tainties at the Chequers meet- 
ing than in 1983. the decision to 
be announced on Monday looks 
like being the same. The econo- 
mic and interest rate back- 
ground is especially favourable 

i i, nn Mirljintv that 


the political outlook will be 
better in the autumn than now. 
In short, there is no alter- 
native. 


Not at all bad for a damage limitation exercise 


THE GAMBLE has paid off. 
Conservative Central Office 
strategists always insisted 
that the local election 
results should be awaited and 
Interpreted with caution 
before the General Election 
button could be pushed. 

The elections, the biggest 
test of public opinion since 
Mrs Thatcher retained power 
is the 1983 General Election, 
are logically a better guide 
than any opinion poll, with 
voting in 369 metropolitan 
councils and district boroughs 
throughout the UK except in 
Scotland and Greater London. 

The pattern of voting this 
year varied considerably 
across the country hot the 
overall message was that the 
Conservatives have done 
better than predicted only a 
few months ago; Labour has 
felled to advance In key areas 
like the East and West Mid- 
lands; and the Alliance 
record hats been good but 
patchy. 

Some months ago. Conser- 
vative leaden were forecast- 
ing net looses of St# to 609 
seats breams the last time the 


seats we/ contested was in 
May 1983 — when the party’s 
fortunes were riding high on 
the Falklands factor. 

The local elections showed 
that far from just seeking to 
curtail the number of authori- 
ties lost to Labour and to the 
Alliance, the Conservatives 
took control of a number of 
Important councils unex- 
pectedly, including Notting- 
ham, Rugby, Northampton, 
Trmworth and Wolverhamp- 
ton. 

These victories, in the Mid- 
lands were particularly sig- 
nificant as it is an area with 
a disproportionate number of 
Tory-held marginals. The 
General Election could easily 
be won or lost there. 

The Conservatives also 
retained control of Solihull, 
the last remaining metro- 
politan borough in the party's 
hands. Its loss to the Labour 
Party would have been a 
disaster. 

In addition, there were 
signs that the Conservatives' 
are meeting the challenge of 
the Alliance In die south 
mere effectively than pre- 


viously. Medina, a Liberal- 
controlled borough an the 
Isle of Wight, was captured 
and the Allhtnre was fought 
off In a number of Conserva- 
tive controlled auth o ri ties, 
including Cheltenham and 
Hastings, that the Alliance 
could have been expected to 
win. 

But in general the 
had a successful day, captur- 
ing West Lindsey, Blyth 
Valley, Pendle, Eastleigh, and 
South Somerset and showing 
they remain a real threat to 
tiie Conservatives. * They 
topped comfortably thrir.tar- 
get of 400 net gains, but did 
not make the across the board 
breakthrough mifey expected. 

The losses of Medina and 
Hart, Hampshire, were par- 
ticularly bitter and In the 
majority of seats, especially 
In the Midlands and North, 
the Alliance dearly remains 
in third place. 

Labour had the psycholo- 
gical disadvantage of start- 
ing off from its strongest- 
ever position in local govern- 
ment, defending over 9,000 
seats, nearly twice as many 


as the Tories. R was there- 
fore modi harder for the 
party to auke dramatic In- 
reads. 

Nevertheless, Labour did 
appreciably worse than ex- 
pected, losing seven councils 
Including Southampton, Wal- 
sall, Kirkless and Darlington, 
and over £ffi® seats net. The 
party did better than ex- 
pected In the Sooth-cant, 
ht vever, capturing Reading 
and holding on to Brighten. 

One victory with a bitter 
sweet taste for Lab our w as fat ■ 
Liverpool where I caretaker * 
Alliance administration has 

been in charge for six weeks 
since the disqualification of 
47 Labour councillors for 
failure to set a rate in 1986. 
The Alliance, desperate to 
capture the dly from the Mili- 
tant dominated local Labour 
Party, gained seven seats — 
but it was not enough. 

Mr Nell Khmeck, the 
Labour leader, will be wait- 
ing anxiously to see whether 
the new local leadership, 
which still has some Militant 
conn e ctions, embarrasses the 
party. 


Councils in London were 
not generally involved in the 
elections, but a significant 
bona lor the Conservatives 
«mif fat the left-wing Labour 
controlled borough of Brent, 
where Mr Ken Livingstone, 
former leader of the Greater 
London Council, is Labour’s 
prospective Parliamentary 
candidate. In a local by-elec- 
tion, Labour was pushed Into 
a poor third place. 

In spite of some dis- 
appointments such as the 
- failure to capture target 
cities like Portsmouth and 
Plymouth from the Conserva- 
tives; Labour continues to 
dominate the country’s town 
halls. 

The strength of Labour 
locally, plus the inroads of 
the Alliance, seem certain to 
widen the rift between cen- 
tral and local government, 
particularly ever issues like 
reform of finance ami control 
of education. 

The Conservatives appear 
to have decided to make 
tighter control of local auth- 
orities a key element in their 


election manifesto and in 
legislation expected to be 
introduced early la a new 
Parliament. 

Large areas of respon- 
sibility for education, hous- 
ing and urban renewal could 
be removed from elected local 
bodies. In education, per- 
haps the most contentious 
element, there wfil be much 
greater centralisation at the 
expense of local education 
authorities, particularly over 
tiie curriculum. School man- 
agement will be devolved to 
head teachers and to boards 
of. governor*. 

Finally, the elections have 
underlined the need for a 
more ready acceptance of the 
practical requirements of 
minority, or hung councils, 
(hie in every five local 
authorities is not ruled by a 
party with an overall 
majority, but little account of 
this has been taken by the 
parties nationally. Paces are 
invariably arranged locally 
and depend more on per- 
sonalities than on policies* 

Richard Evans 


IT WAS only a matter of time 
before Maj-Gen Richard Secord 
short-circuited. "X have got 
bigger problems to face,” he 
exploded under relentless ques- 
tioning at the joint Congres- 
sional hearing on the Iran- 
Contra affair. “I have got a 
special prosecutor across the 
street trying to throw us in jail 
for performing our duty as we 
saw it” 

“The tall, angular figure of 
75-year-old Mr Lawrence Walsh 
wag never far away from the 
hearing, which opened this 
week under the bright lights 
of the Senate caucus room. Off- 
Stage, he and a team of 23 
associate counsels, 35 FBI 
agents and 11 Internal Revenue 
Service officials have for the 
past four months been building 
a criminal case against the 
major players in the scandal. 
Judging by his testimony this 
week. Richard Secord is defi- 
nitely one of them. 

Mr Walsh will not talk about 
specific individuals under scru- 
tiny, but in a 50-minute inter- 
view this week in a downtown 
Washington DC office he offered 
some clues about the nature of 
the case he is preparing as 
" independent counsel N 

appointed to investigate wrong- 
doing in the executive branch 
of the US Government. 

"The goal of this inquiry is 
to arrive at the truth and take 
whatever action may be appro- 
priate," says Mr Walsh, a 
native Nova Scotian who counts 
among his career highlights 
cracking an American pro-Nazi 
group in the 1930s, fighting 
racketeering an the New York? 
New Jersey waterfront In the 
1950s. and as deputy Attorney 
General under President Eisen- 
hower, starting an ultimately 
success investigation of the 
Teamsters union boss Jimmy 
Hoffa. 

He has spent most of the past 


spell as President Nixon’s re- 
presentative at the Paris peace 
talks with the Communist Viet- 
namese. His current job — 
which thanks to the art of dele- 
gation he manages to combine 
with a continuing private prac- 
tice in Oklahoma City — * cannot 
be explained without a short 
history lesson. 

The office of independent 

counsel was created in 1978 to 


Man In the News 


Lawrence Walsh 

Irangate 
lets loose 
its fraud 
detector 

By Lionel Barber 
in Washington 


l - -v 
1 


replace the earlier position of 
special prosecutor. The move 
was aimed at protecting the 
post against arbitrary action by 
the executive 

Lawrence "Ed” Walsh was 
appointed by a federal panel of 
judges on December 19 last 
year. Until that time, tiie 
criminal investigation of the 
Iran-Contra affair had been led 
by Mr Edwin Meese, US 


ersonal friend . of the Presi- 




conflict of Interest and could 
not. as a senior government 
officer, investigate the Govern- 
ment itself. He recommended 
that the panel of judges appoint 
an independent counsel. 

Mr Walsh is leading the most 
comprehensive criminal investi- 
gation of any independent coun- 


sel: it covers every aspect of 
the US aims sales to Iran, the 
diversion of profits from those 
sales to the Nicaraguan Contra 
rebels and the private aid net- 
work set up to arm the Contras 
during a Congressional ban on 
official US military aid between 
October 1984 and October 1986. 

So far, the deceptively mild- 
mannered Mr Walsh has con- 
centrated his attack on the 
legality of private fund-raising 
efforts to send arms to the 
Contras. And he has met with 
swift success, uncovering a tax 
fraud scheme whereby rich 
private American donors sent 
their Contra contributions to 
supposed charitable founda- 
tions and then wrote off the 
donations against federal tax. 

Two men — one a profes- 
sional fund-raiser and another 
a Washington public relations 


executive — have pleaded 
guilty to a single count of con- 
spiracy to defraud the US 
Government of revenues and 
have named the sacked White 
House aide, Lt Col Oliver 
North, as a member of the 
conspiracy. 

The speed of Mr Walsh’s 
convictions suggest that the 
mass of evidence against the 
two men was overwhelming. 
This must be very worrying for 
the White House, in view of the 
fact that the President gave 
his blessing to private fund- 
raising for the Contras during 
the Congressional aid cut-off. 

The day after the first guilty 
plea, by Ur Carl Charmell. 
President Reagan's press secre- 
tary issued a defensive state- 
ment _ which received less 
attention than it deserved. It 
said: "In the legal view of 


the White House, the President 
is not part of this conspiracy.** ! 

Though difficult to prove, Mr i 
Walsh says conspiracy is a use- 
ful way to prise open the scan- 
dal and prepare a criminal 
case. "If one was presented 
with a complex scries of trans- 
actions with a largo number of 
people participating in them," 
said Mr Walsh, stressing; of 
course, that he was speaking 
only hypothetically, " one could 
think In terms of a conspiracy.” 

But the establishment of a 
criminal case of conspiracy to 
break the law is only the start: 

" If steps were taken in. further- 
ance of a certain agreement to 
conspire, those stops in them- 
selves may be discrete (i.t, 
specific) crimes.” 

Between the lines, Mr Walsh 
Is suggesting that other federal 
laws may have been violated In 
the Iran-Contra scandal. He 
declines to say which ones, 
though most commentators have 
suggested that they Involve 
illegal export of weapons from 
the US and violations of tiie 
Neutrality Act which bans mer- 
cenary recruiting in the US. 

But this is all a broad canvas 
and Mr Walsh's picture la far 
from complete. He Is still wait- 
ing for Swiss bank records 
which trace the money trail; 

Congress, which wants to tell 
tiie Iran-Contra story to the 
American public, is an xiou s to 
secure testimony from all the 
major players. It has therefore 
given limited Immunity from 
prosecution to several indi- 
viduals in order to induce them 
to talk. 

Mr WaUh cannot use tes- 
timony which has been given 
under immunity; he must seek 
the evidence from Indepmident 
sources. 

This leads to some extraordi- 
nary steps: each week Mr 
Walsh's team places evidence 
gathered under seal before a 
court in Washington. Mr Walsh 
and his team may not listen 
to any testimony given, by a 
witness testifying under Im- 
munity. 

One person he will almost 
certainly be listeni ng to is Mr 
Secord who agreed to testify 
without immunity this week. 
Every word that Mr Secord said 
may do used against him by Mr 
Walsh in a future indictment 
No wonder that fuse blew. 



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CAN YOU FIND AN 
INVESTMENT 
THIS GOOD? 


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TllilV 


L^V 3 


Financial Times Saturday May 9 1987 




ux » 



", Milton Keynes is such a nets 
place, new businesses. Trade 
unions are not the sort of thing 
people want to know about 
round here, because unions as 
far as the general public are 
concerned meow striking. And 
that’s not what people want 
round here.** 

EMMA. DUTHEE. ft young 
clerical worker, is an anomaly 
in the new town, of Milton 
Keynes. First, she is in a union 
—the CPSA civil servants, and 
second, she is on strike — one of 
those from the local unemploy- 
ment. benefit office taking part 
In the civil service unions' cam- 
paign over pay. 

She spoke yesterday in the 
middle -Of a unique trade union 

initiative — an exhibition-cum- 

recruitment drive, trying to 
present the positive side of 
trade unions, in an environment 
hostile to them. 

The new city of Milton 
Keynes, sprawling across the 
heart of rural Buckinghamshire, 
is a 'non-union town- 'It has 
been very difficult for trade 
unions to organise here,** says 


The state of the (Milton Keynes) union 


Vic Graves, chairman of the 
town's Trade Union Council and 
a prime organiser of the two- 
day event “Some, of the prob- 
lems are to do with the image 
we have as a movement: we 
are trying to redress that" 

To try to do that, local unions 
yesterday took over the city’s 
airy, spacious Middleton Hall in 
the middle of its vast shopping 
complex, trying to persuade the 
50,000 shoppers who pass 
through it on Fridays and 
Saturdays to stop and find out 
what — if anything — trade union- 
ism has to offer them. 

Norman Willis, the TUC 
General Secretary,' who form- 
ally opened the recruitment 
push, had little doubt: even In 
a prosperous town like Milton 
Keynes, one in 10 was oat of 
work: even in a new town there 
was oppression, and exploita- 
tion: and even In difficult times 


By Philip Bassett, Labour Editor 


unions offered a remedy for 
that; 

Despite such efforts, unionis- 
ing Milton Keyses will be diffi- 
cult The town — a mnegmna in 
the coming election. Its balance 
confirmed in Thursday’s local 
polls, which saw in the town 
gains to the Alli a nce but still 
no <me party in overall control 
—4s almost a paradigm of how 
government ministers would 
like -the UK economy, labour 
market and industrial relations, 
tote. 

Above all, Milton Keynes — 
designated in 1967 as the last 
great new town project— as 
new: new place, new buildings, 
new work, new people, new 
attitudes. Growth is its charac- 
teristic. Its population, about 


130,000, is expected to reach 
150.000 by 1890. Jobs are grow- 
ing accordingly — at a net rate 
of about 3,500 every year. 

■ Its industrial structure fore- 
shadows the future: two-thirds 
of jobs are in the service indus- 
tries, only 27 per cent in pro- 
duction. Its employers are 
small: two- thirds employ 10 or 
■fewer people, only three com- 
panies have mure titan 1,000 
employees, Foreign-owned com- 
panies are prominent. The pro- 
portion of women In the labour 
market is increasing. 

Classically, all of these fac- 
tors work against trade union- 
ism. u Milton Keynes is known 
as 'the <aty of the future,’" 
‘says its unions. "Does trade-- 


unionism have a place in the 
future ? ” 

It does not look like it — at 
least not in Milton Keynes. It 
is sold to prospective employers 
as a non-union town: “Levels 
of unionisation vary widely 
from company to company,’’ 
runs one report from the 
town's go-getting Development 
Corporation to companies 
thinking of moving there, 
“ with several firms success- 
fully establishing non-union 
plants in the city." 

Another Development Cor- 
poration briefing note puts it 
more starkly: "The majority of 
companies in Milton Keynes 
are n on-unionised.” 

Local union leaders put the 
^unionisation level in the area 


at below 20 per cent— half the 
UK average, equivalent to 
unionisation rates in the US. 
Stripped of clear areas of 
unionisation, such as British 
Rail’s workshops at Wolverton, 
or the Open University, the 
real figure is likely to be much 
less. 

Even unemployment at 
around the national average, 
and wage rates, in Milton 
Keynes, according to local sur- 
veys, perhaps 25 per cent 
below London salaries, does not 
seem to be helping the unions' 
cause. 

Local union leaders believe 
.there may be potential for the 
recruitment into unions of 
about 19.000 employees. Such 
ambition — it would push the 


unionisation rate above the UK 
average-— looks over-optimistic. 

"I'm not really for the 
unions," says Martin Thompson, 
a self-employed painter, and 
former member of the build/ig 
union UCATT. 'The unions 
bought it a few years ago over 
strikes. They were meant to be 
the ultimate weapon — but they 
tend to be the first thing they 
do." 

Ronald Clark, just retired as 
a quality controller at Vaux- 
hall's Bedford truck plant, ediu: 
"A lot of these young industries 
like electronics — they don’t 
seem to think they need a union 
like in the old industries.” His 
wife Mary, an NUT member, 
says workers needed to be 
represented, and like many 
others there, praises the unions' 
initiative. 

"As soon as people think of 


unions a big percentage think 
about Arthur Scargill. And as 
much as he may have done lor 
the miners’ union he gives the 
unions a bad image." says one 
distribution industry employee. 

Yesterday, Norman Willis was 
unequivocal, insisting that 
unions would have to make 
efforts in the new towns. It will 
be essential for the trade unions 
to establish a presence m places 
like Milton Keynes if they are 
to stand much real chance of 
continuing to be a valid, repre- 
sentative social force. 

Mr Willis’ mere appearance 
there yesterday is a testament 
to that poinr. and the recruit- 
ment drive — to be followed 
this coming week by other 
linked events — is evidence that 
the unions are far from just 
accepting that they are irrele- 
vant. 

"We have got to organise 
people in places like Milton 
Keynes." says Vic Graves. 
"Because if we don’t we are 
going to have to ask ourselves 
some very serious questions 
about what we're doing." 


France is ready to go on trial 


rase 


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ON THE banks of the River 
Saone, the finishing douches are 
being put to a temporary court- 
room where, to the next two 
months, a frail old man and his 
brilliantly destructive lawyer 
wiH be the focus of France’s 
firml inquest Into the crimes of 
(he second world war— a show 
trial that threatens not to run 
to script 

Twice condemned to death in 
his absence by Che French 
courts for murder and torture, 
Klaus Barbie, who commanded 
the Gestapo secret police in 
Lyon during the. Second World 
War, will face charges of crimes 
against hnmani+y — the only 

crimes under French law which 
no statute of limitations can 
wipe off the record. 

The trial will bring out fee 
horror of the deportation of 
Jews to the German extermina- 
tion camps; such as the raid 
on the Jewish children’s home 
at Izieu, east of Lyon, which 
sent more . than 40 Jewish child- 
ren to their deaths in Ausch- 
witz, or the deportation In 1943 
of 84 Jews selffid in Lyon’s Rue 
Sainte Catherine. 

In denying involvement In the 
raids, - -74-year-old Barbie, de- 
fended by the honeytongned 
but hated Jacques Verges, will 
try to turn round the charges, 
exposing the extent of France’s 
complicity in the deportations 
and attacking the - national 
mythology of the resistance. . 

The trial can scarcely avoid 
providing a judgment of Nazi 


-- zj-: .'-.r.-i-*. 


Chernobyl 

From Dr it. Clark 


Sir.— In his letter of April 
39, Mr Webster refers to the 
National Radiological Protec- 
tion Board report, which shows 
that some infants hx north 
Wales, Cumbria and southwest 
Scotland could have received 
radiation doses forty times 
greater . Jtbl® the UK average 
from CherhpbyL I should point 
out that we assume 'in our cal- 
culations that these Infants 
drank 0.7 litre a day of fresh 
milk for the period of Interest 
at the maximum representative 
concentration of iodine — 131 
observed, all from the same 
farm, without any of the dilu- 
tion that would arise from 
bulk collection or delivery. 
This postulate implies an addi- 
tional risk from all thyroid 
cancer around 1 In 10,000 over, 
a lifetime, which is about 10 
per cent of the natural lifetime 
risk. This is a so-called critical 
group calculation and as there 
are limited numbers of infants 
in this category, the most pro- 
bable outcome is no case of 
thyroid cancer in these infants- 
owing to Chernobyl. 

He also says that the Initial 
assessments by the Board of 
fallout levels from Chernobyl 
were very over-optimistic and 
cites the continuing restrictions 
on the movement and slaughter 
of sheep in some hill farms as 
evidence. This is due to a com- 
bination of poor pasture and 
soil and the elevated deposi- 
tion of radiocaesnim in these 
areas caused by heavy -rainfall 
during the passage of the con- 
taminated cloud on 2-3 May 
1986. Nonetheless, our predic- 
tions about radiocaesium levels 
have proved correct for an i mal s 
grazing on normal pasture 
lan d. 

He further criticises the 
timing of adviee to avoid 
drinking fresh rainwater after 
the accident: we can only re- 
state the fact that the advice 
was published as soon as the 
high levels of radioactivity 
were discovered. He then 
criticises the absence of advice 
about radioactivity in fresh 
milk. The peak levels of radio- 
iodine in milk to the areas of 
high deposition were, on the 
average, 10 per cent of our 
derived emergency reference 
levels; in the country generally, 
they were less than 1 per cent 
He tries to compare the effec- 
tiveness of - restrictions placed 
on foodstuffs in Europe with- 
out mentioning the fact that 
deposition was much higher in 
parts of the continent; doses 
were therefore correspond- 
ingly higher than here, and 
intervention would inevitably 
appear to be more effective in 
reducing doses. 

Our overall estimate of the 
average risk of fatal cancer to 
individuals in the UK from the 
Chernobyl accident remains one 
in a million over- the next 50 
years. Although Mr Webster 
may not like it, adding all-fee 


ideology and a memorial to the 
death camp victims. But many 
fear fernt Barbie may not be 
tile right symbol of Nazi geno- 
cide. This will not be a rerun 
of the trial of Adolf Kichmann 
in Jerusalem, for Barbie was a 
lieutenant in the Gestapo, not 
(the architect and chief manager 
of Hitler's anti-Jewish policy. 

Barbie owes Us notoriety not 
to his activity in the deporta- 
tion of Jews, but to the capture 
and death in captivity of Jean 
Moulin, leader and bero of the 
French resistance. 

Sent into occupied territory 
by General de Gaulle to rally 
and organise the scattered re- 
sistance movements. Moulin was 
the last man buried in France’s 
Pantheon and occupies a re- 
vered place in the national 
memory. 

But Mr Verges will revive 
claims that he was betrayed to 
the Germans by members of the 
resistance itself, who feared he 
was saving too much ground to 
the communists. •. 

Whatever Moulin suffered, 
there bas in any case been dis- 
agreement over whether acts 
against the resistance should 
count as crimes against 
humanity. The judge preparing 
tiie case, backed by the Lyon 
prosecutin' and Jewish organisa- 
tions involved in the trial, 
-wanted to lintit the charges 
against Barbie to those involv- 
ing the torture and deportation 
of Jews. They argued that the 
torture and execution of resist- 


ance members could be de- 
fended as the repression of 
hostile opposition — war crimes 
perhaps, but not crimes against 
humanity. 

This interpretation aroused 
foxy among associations of for- 
mer resistance members and 
was rejected by the Paris Ap- 
peal Court. So Barbie will also 
be charged with the deportation 
of resistance members — though 


women and men were system- 
atically and scientifically exter- 
minated, not because of what 
they did but because of what 
they were, and that the ex- 
ample of the crimes that cer? 
tain ideologies can lead to 
should serve as a lesson fer- 
tile future.” 

But others see the trial as a 
chance for France to come to 
terms with its history, to settle 


George Graham explains why the 
Barbie trial gives France the 
opportunity to salve its conscience 


their torture, execution and 
even the death of Moulin are 
excluded from the charges. 

Nevertheless, some Jewish 
leaders, and others, fear that 
putting crimes against the re- 
sistance and crimes against the 
Jews into the same bag denies 
the uniqueness of the holocaust 
and contributes to the “banalisa- 
tion" of the Nazi extermination 
poliqy. 

Mrs Simone Veil, former 
President of the European Par- 
liament and a survivor of 
Auschwitz, says: “The only 
-thing which seems to me import- 
ant is that the trial should be 
the occasion to remembering 
that millions of phfidrpn. 


its conscience over the period 
of collaboration with the Ger- 
man invaders. 

The exorcism may not be 
easy. Mr Verges has served 
notice that he will follow his 
preferred defence tactic: attack. 

The lawyer, who has 
previously defended Algerian 
rebels and Palestinian terrorists, 
will both deny Bacbie’s involve- 
ment in the crimes and seek 
to muddy the reputation of the 
resistance. He will also try to 
draw a parallel between Bar- 
bie’s activities in Lyon and 
France's repression in Algeria 
in the 1960s. 

Mr Verges’s accusations may 
reawaken bad memories in a 


Letters to the Editor 


risks and dividing by the num- 
ber of people does give the 
average. * . . 

(Dr) M_ J. dark. 

National Radiological ■ 
Protection Board, 

Chilton Didcot, Oxfordshire. 

Charges for 
museums 

From Dr P. HOI 

Sir,— The public is already 
providing horrendous sums to 
maintain museums, many of 
which are of questionable value. 

In Leicestershire, for ex- 
ample, the mosem service costs 
the ratepayer — whether- he likes 
it or not— £3.75 to every man, 
woman and . child' who visits. 
Over £lm per year! 

All museums should be finan- 
cially self-supporting by admis- 
sion charges. 

(Dr) P. r. am, - 

The Bowery, 

Wymondham, 

Melton Mowbray, Lei c*. 

Too many 
reports 

From Mr A. Cox, 

Sir, — Re your article (May 
2) IBS’s complaint about the 
cast of sending out annual re- 
ports is a bit rich. I have 6,000 
shares and received 5 copies of 
the report and accounts; my 
wife received two copies for her 
holding of 1,700 shares. 

My wife’s double helping 
arose from the way TSB gave 
priority to customers. Appa- 
rently one copy was for her 
priority allocation and one was 
for the shares she received in 
the ballot. 

I was sent one copy to my 
original allocation and the other 
.4 copies relate to a purchase of 
5,000 shares on one subsequent 
occasion. Instead of entering 
my name once in the l ist of 
shareholders, the registrars 
i struck out the names .of the 
holders who had sold to me and 
substituted my name in each 
CS8£. ’ ■ 

Needless to say we received 
a total of 7 dividend cheques. 

The waste is bad e nou gh but 
there are more serious implica- 
tions. The chairman’s lettters 
did not explain that many share- 
holders would receive more than 
one copy of the report nor how 
many proxy voting forms they 
should return. 

A shareho lder could reason- 
ably assume that, by completing 
one form, his instructions would 
be followed to the full extent 
of bis holding- It seems, how- 
ever, that each, form carried 
only the number of votes hid- 
den in a reference number In the 
top left comer of the form. Con- 
aeouently, any polLat the recent 
AGM -would not have shown 
voting intentions correctly. 

The analysis of shareholders 
on page 12 of the accounts must 
be inaccurate as I have been 
counted 5 times and my wife 


twice; this sort of thing has 
obviously been repeated count- 
less times all over the country. 

In recent TV and newspaper 
advertisements TSB claim that 
it has nearly 2}m Shareholders 
but ft must know that this is an 
exaggeration. 

I have written to the chair- 
man about the waste and 
says that they hope to aggregate 
shareholdings by the end of the 
year. 

A. J. Cox, ... 

33 Eastdean Avenue, 

Epsom, Surrey. 

A Burmah Oil 
solution. 

From Mr M. David 

Sir, — I refer to "The Burmah 
Oil” item in Lex of May 6 which 
highlights the proposed harm- 
less tinkering, with a large 
problem. 

Surely the most effective 
“method” (which I prefer to 
"device” as this is often used 
to Imply something improper) 
of dealing with this problem 
would be the creation of 
deferred shares and offer to 
shareholders to convert their 
existing shareholding. The 
deferred shares could be issued 
with a “life" of. say. three years 
after which they would become 
ordinary (dividend paying) ones 
again. 

Thus, shareholders who accept 
deferred shares will help the 
company and themselves pro- 
vided, in the Burmah case, that 
for the time being diversification 
abroad either ceases or is 
limited to turn-around situations 
with carry-forward tax losses. 
M. B. David, 

41, Fawley Road, N17. 

Standards for 
food 

From Mr T. Lang and Metome 
Miller 

Sir,-— Your report (May 8) on 
the EEC’s drive to remove trade 
barriers was wrong to dismi s s 
concerns about the proposed 
scheme for decision making pn 
food. as mere “procedural quib- 
bling." At stake are basic 
issues of democracy and food 
quality, standards and informa- 
tion. 

We are concerned that Lord 
Cockfield’s proposals to remove 
barriers to food trade will not 
protect the public interest The 
new EEC approach would rely 
upon labelling rather than legal 
standards to maintain food 
quality, and hence a good diet 
This policy has already been 
tried out in (he UK for meat 
products. A study conducted 
by. a trading standards officer 
found that when standards for 
meat products were lowered 
and reliance placed upon label- 
ling. the quality of meat in pro- 
ducts was reduced considerably. 
Another study by environmental 
health, -officers found that the 


1984 labelling regulations for 
bacon and ham products led to 
misinformation about water 
content in the products. 

The other issue at stake is 
the balance of power between 
tiie Commission, Council and 
parliament. The Commission 
wants to introduce an advisory 
committee structure that will 
give (he commission much 
greater powers. Future deci- 
sions on, for example, the addi- 
tives that would be permitted 
in food would be made 
primarily by the Commission 
and therefore subject to food 
industry lobbying pressure. The 
Council might be granted some 
say in the matter. Our elected 
representatives in the Euro- 
pean Parliament would be cut 
out of the decision making pro- 
. cess. This latter point is being 
challenged only by the D a n i sh 
Government. But it is' an issue 
that should be of concern to 
us aH. 

Tim Lang (Director), 

Melanie Miller 

(Public Health Project Officer), 
London Food Commission, 

PO Box 291, NS 

Plastic 

cards 

From the UK Operations 
Director ; Midland Bank 

Sir, — Your reporter Hugo 
Dixon (April 30 and May 1) has 
apparently, misunderstood the 
nature of our new Vector cur- 
rent account service. 

The plastic card to be issued 
to Vector cardholders is a 
charge card. Identical in most 
functional respects to our 
existing Gold MasterCard. Un- 
like Barclays’ Connect card, it is 

not a debit card, as Mr Dixon 
says- A debit card by defini- 
tion would create a direct link- 
age between the retailer and 
the customer’s current account 
No such linkage is involved 
with the Vector card though, 
as with Gold MasterCard. Vector 
accounts will normally be 
! settled monthly by direct debit , 

We do have a debit card pilot 
scheme called Speedline, operat- 
ing in Milton Keynes, and the 
subject of retailer commissions 
will be properly considered 
with the retailers as we move 
towards a fully-fledged national 
scheme. 

Michael Fuller. 

120 Cannon Street, EGA 

Finance and 
farms 

From Mr D. Bunting, 

Sir,— -In response to Farmers 
Viewpoint (John Cherrington, 
May 6) I am not sure if he is 
welcoming or complaining 

about wealthy investors buying 
■farm*. Their involvement 

could be extremely beneficial 
it as suggested, it is for “sport- 
ing and. amenity factors.” 

They may- persuade the Gov- 


country whose post-war purges, 
though bloody and often unjust, 
still left many collaborators un- 
touched. His counter-attack 
oould also rattle the golden 
myth of the resistance, which 
was one of the keystones in re- 
building France’s self-confidence 
after the experience of defeat 
and occupation. 

“I sincerely hope feat fee 
Barbie trial does not waken our 
old demons, does not revive our 
old quarrels,” says Raymond 
Barre. former French Prime 
Minister. But his anxiety may 
be misplaced because France 
has already begun to examine 
the myth and to face up to the 
realities that lie behind it. 

There may once have been 
some truth in the belief held 
by many Frenchmen, with some 
shame, that the only historians 
willing to confront the occupa- 
tion period honestly were 
Americans. 

US historian Robert Pax- 
ton's work in the late 1960s 
and early 1970s attacked the 
view that Marshal Philippe 
Petain’s collaborating govern- 
ment had resisted and tried to 
moderate Hitler’s anti-Jewish 
policy, and showed that his 
Vichy regime had even ex- 
ceeded German demands. 

If there remains an intellec- 
tual current seeking to re- 
habilitate collaborators, snoh as 
Robert Brasillach, a virulent 
anti-Semitic writer executed at 
fee end of fee war, France can 
respond with historians such 


eminent the message for alter- 
native land use Is getting across 
and leave farmers to get on 
with farming. 

They may provide a useful 
prop to land values and prevent 
further embarrassing bank in- 
terventuv on reducing assets. 

Their satisfaction from the 
farm being only “self-support- 
ing" could assist in reducing 
national production. (Every 
little helps). 

By purchasing land origin- 
ally on loan it reduces bank 
borrowing in the agricultural 
sector and may cause banks to 
be more protective and inter- 
ested in those that remain. 

Don Bunting, 

Pear Tree Road, 

Berne Bay, Kent 

Small brokers 
forced oat 

From Mr I. Naylor 

Sir, — I cannot allow Mr D. 
Conway’s letter (May 5) to 
pass unchallenged. His analogy 
of the activities of insurance ; 
sales representatives being 
equated with service in a 
supermarket is, in my view, 
well off fee mark. 

Insurance and investment 
plans are generally purchased 
through face-to-face contact i 
after a number of meetings, 
not impersonally over the tele- 
phone or by mail. 

It is fee personal service 
aspect which enables the 
industry to grow and, indeed, 
sales representatives to prosper. 
.Iain Naylor. 

Firth House, 

Roslin, 

Midlothian. 


Judiciary in 
Belgium 


From Mr B. Simon. 

Sir,— Tim Dickson's article on 
fee language dispute in 
Belgium (May 5) was very in- 
forming. 

I would, however, like to 
point out that the. Council of 
State (Raad Van State) is not a 
quasi-judicial body. Under a 
written constitution, where 
judicial powers are vested in 
courts of law, in accordance 
wife fee principle of separation 
of powers, it would be wholly 
unconstitutional to establish 
quasi-judirial tribunals. As such 
i fee Council of State is part of 
the judicial machinery of 
i Belgium, dealing exclusively 
: with public law disputes. 

There are other administra- 
tive colleges, to whom a citizen 
may appeal in fee first i n s t a n ce, 
which are part of the executive , 
body. They do not exercise any 
judicial functions whatsoever. 
Mr Happart’s case went first to 
such a tribunal, namely the 
permanent deputation of fee 
province concerned, then to the 
upper a dminis trative court, and 
fee Council of State, following 
refusal of fee appeal by fee 
administration. To conclude, 
there can be no quasi-judicial 
colleges in Belgium. 

B. B. S'mflp, 

Oxford Polytechnic, 

EeadingUm , Oxon. 


as Fred Kupferman of the Sor- 
bonne — a Jew whose family 
were deported, and author of 
an aodaimed biography of 
Pierre Laval, fee Vichy Govern- 
ment Prime Minister executed 
in 1945. 

“I believe there is a great 
curiosity today, a feeling feat 
a mythology was created about 
fee period and a desire to see 
feat period more clearly. That 
will not cut into the profound 
agreement which still exists 
about fee resistance," com- 
ments Pierre Nora, a historian 
and director of the Gallimard 
publishing house. 

He suggests the new realism 
may be connected wife the de- 
cline in significance of fee 
French Communist Party, 
which took a leading role in 
fee resistance and has been 
largely responsible for cultivat- 
ing its legend. 

Whatever the cause. France 
appears ready to confront any 
disagreeable surprises that Mr 
Verges may spring during the 
trial. A recent opinion poll 
showed that 69 per cent of those 
questioned favoured judging 
Barbie, even at the risk of un- 
leashing polemics. Only 16 per 
cent were in favour of letting 
him finish his life in Bolivia. 

The strength of fee vote for 
justice rather than oblivion 
surprised many historians and 
Jewish leaders, but may indicate 
a willingness to face up to fee 
questions raised by fee occupa- 
tion period. 



n 

W$&- 




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.. 


m 


*;>. "i 



Barbie: twice condemned to death in his absence and now, 
in Lyon, facing charges of crimes against humanity. 


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I 


Financial Times Saturday May 9 1987 


UK COMPANY NEWS 


THE CREATION OF A £130M DIVERSIFIED SERVICES GROUP 

Godfrey Davis and Sunlight merge 


BY CLAY HARRIS 

• Godfrey Davis (Holdings) 
and Sunlight Services Group 
yesterday unveiled an agreed 
merger which will create a 
£130m diversified services com- 
pany with activities ranging 
from contract vehicle hire to 
cleaning and security. 

The merger will take the 
form of a share offer by Godfrey 
Davis for its larger partner, and 
Sunlight management will 
assume the top executive roles 
in the combined group, which 
will retain the Godfrey Davis 
name. 

Both sides insisted, however, 
that the deal represented a true 
merger. The combination would 

f ;ive both companies the scope 
or expansion that each had 
lacked individually. 

The merger also solves a 
problem of management suc- 
cession for the ageing Godfrey 
Davis board. 


Godfrey Davis comprises 
Ford main dealerships, contract 
vehicle hire and portable build- 
ing hire and residential parsk. 
It sold its car hire business to 
Europcar, the Renault sub- 
sidiary, in 1981. 

Sunlight operates commercial 
cleaning, laundry and security 
services. 

Godfrey Davis and Sunlight 
share a developed structure 
giving wide discretion to 
divisional managers. Ur John 
Ivey, Sunlight m»nngnrip direc- 
tor and designated chief execu- 
tive of the combined group, 
said, however: M We will take 
a keen interest in what happens 
on both sides of the fence." 

The companies said they also 
shared a similar operating 
philosophy and expected to ex- 
tend their rental Interests. 

Mr Ivey, aged 45, and Mr 
George Boyle, 41, who will take 


over as finance director, bring 
a lower age profile to the man- 
agement. Mr C A. Redfera, 
70, Godfrey Davis chairman, 
will stay on in the same. posi- 
tion in the combined group only 
until the end of 1988. Several 
other Godfrey Davis managers 
were in their 60s. 

Sunlight shareholders would 
end up with 60 per cent of the 
combined group under the 
terms of the offer, which were 
formulated to reflect the two 
companies’ proportionate earn- 
ings contributions. 

Sunlight reported pre-tax 
profits of £6.6m on turnover of 
£77JSm for 1986. Godfrey 
Davis said yesterday that it 
would achieve pre-tax profit of 
at least £4.4® in the year that 
ended on March 31. 

Under the offer, 19 new God- 
frey Davis shares would be ex- 
changed for every ten Sunlight 


shares. Godfrey Davis shares 
slipped 12p to 185p to value 
Sunlight shares at 351p against 
yesterday’s market price of 
340p, up 40p. 

Sunlight win declare a second 
interim dividend of 6.5p to 
avoid a nine-month income gap 
for its ordinary shareholders 
because of Godfrey's Davis's 
different financial year. 

The offer has been irrevocably 
accepted on behalf of 42.3 per 
cent of Sunlight's shares, in- 
cluding institutional holdings 
by Throgmorton Trust, G overt 
Strategic Investment Trust and 
Scottish American Investment 
Trust. 

The merger was arranged by 
Hoare G ovett, long-time stock- 
brokers to both companies. Xt 
advised Sunlight and Ktein- 
wort Benson advised Godfrey 
Davis. 


W Tyzack 
in £2.3m 
cash call 

By Clay Harris 

W. A. Tyzack, SheffielMwsed 
engineer, is to raise £2 .3 m 
through a one-for-three rights 
Issue. It also reported yester- 
day a decline in interim pre- 
tax profits from £162,000 to 
£1524100. 

Turnover in the six months 
to March 31 increased from 
&L39m to £4. 51m. 

Tyzack said, that operational 
performance had improved in 
the first half, but profits had 
been reduced by the weakness 
of the dollar. Sales of trans- 
missions, machine tool slide- 
ways ar> d machine knives had 
strengthened. 

Despite the fall In profits, 
Tyzack raised its interim 
dividend to 0.8Sp (0.6p) and 
promised at least to maintain 
the final at L4p. 

The proceeds of the rights 
issue will be used to eliminate 
Tyzack’s medium - term 
borrowing of about flm, Mr 
Bin Dacombe, chairman, said 
yesterday. The remainder 
would be used to fund 
capital investment involved In 
the integration of the com- 
pany's recent acquisitions. 
Seddon & Bramhall and A. R. 
Heathcote. 

Nassau-based Quail Invest- 
ment said yesterday that It 
was reviewing the 28.4 per 
cent stake in Tyzack which It 
holds In concert with Quarius 
Investments. Quail is seeking 
board representation at 
Tyzack. 

*Gild Investment, based in 
Monaco, said meanwhile that 
It plans to take up the lights 
on its 6.8 per cent holding. 

Tyzack shares rose Ip to 
136p, compared with the 
rights price of 105p. 

ILG buy-out 
unconditional 

MR HARRY GOODMAN’S 
Hudson Place Investments 
has declared its buy-out for 
International Leisure Group, 
of which Mr Goodman Is 
chairman, unconditional after 
receiving acceptances for 
almost 7 0 per cent of the 
company. „ , 

Early last month Mr Good- 
man launched a 200p a share 
offer, valuing the company at 
£103m. 

Hudson said yesteroay it 
had received acceptances for 
35.89m ordinary shares, equal 
to 65.9 per cent. It had 
also received acceptances for 
15.19m preference shares, 
equal to 5L5 per cent. 

The cash would remain 
open indefinitely, but the 
debt alternative would close 
on May 21. 


Wace raises 
£2m in placing 

Wace Group, the printing 
company, yesterday said it 
had placed 1.2m shares to 
raise £2m and had acquired 
two companies for an Initial 
consideration of £1.5m. 

The company said the 
placement would allow it to 
retire some short-term debt 
which would provide the 
group with greater flexibility 
to sustain its growth. 

Wace paid £940,000 for 
Brand print, a company with 
sales of £4J59m and pre-tax 
profits of £111.000. It paid 
£560,000 for Emery McLaren 
Orr, which had a turnover of 
flm and pre-tax profits of 
£50,000 In the year to March. 

Wace said that the two 
acquisitions illustrated the 
board’s objective of provid- 
ing high-quality advertising- 
related services to achieve 
consistent growth by organic 
growth and acquisition. The 
purchase price for both 
acquisitions could rise, 
depending on profit perform- 
ance over the next two years. 


Holt Lloyd 

Brokers are forecasting pre- 
tax profits for Holt Lloyd this 

year of BUm, not £9.4m as 
repotted in yesterday's FT, 

giving a prospective p/e of 13 
on Thursday’s dose of IfSjp, 
op 3p on the day. 


Sunleigh raises offer for Dale 


BY NIKKI TA1T 

Sunleigh Electronics, the 
USM-quoted electron ics h olding 
company in which FKI Elec- 
tricals has 25 per cent of the 
shares, yesterday increased its 
contested offer for Dale Elec- 
tric, the generating sets manu- 
facturer, by £4.5m to £ 17.2m 
and added a cash alternative. 

But the new terms — -which 
have been declared final — met 
with an immediate rejection 
from Dale. The offer was 
“totally unacceptable,” said the 
company, describing It as “a 
further attempt by Sunleigh to 
seize the benefits of the com- 
pany's trading recovery.” 

Mr T ain Dale, group chief 
executive, stressed yesterday 
that Dale would fight on inde- 
pendently and was not seeking 
a “white knight” — though he 
said that a number of 
approaches were made when 
the first Sunleigh bid arrived. 


Mr Dale added that on 
Thursday night be had spoken 
to Mr Roger Fletcher, manag- 
ing director of Memrier-Swain, 
another USM company which 
has recently taken its stake in 
Dale to L42 per cent, and 
believed that the stake was not 
aggressive. 

Menvier, which makes emer- 
gency lighting equipment said 
on Thursday that “ it would not 
be a bidder at this stage.” 
Yesterday, the company refused 
to add to that statement 

The new Sunleigh terms are 
13 shares for every four Dale 
are in family hands; MAG 
previously). With Sunleigh up 
3}p to 39Jp on the news that 
values each Dale share at 
128.4p. There is a cash alter- 
native of 110.5p. Yesterday, 
Dale shares added 8p to 114p. 

Sunleigh, however, bad only 
limited success in raising its 
stake in Dale yesterday— by the 


dose this had increased from 
7.97 per cent to 824 per cent 
About 22 per cent of the shares 
aer in family hands; MAG 
holds 9.6 per cent; Scottish 
Amicable 6.5 per cent and the 
Prudential 6 per cent Accept- 
ances in respect of the earlier 
offer which dosed yesterday 
have not been announced yet. 

Mr Tony Merryweather, 
chairman of Sunleigh, yester- 
day maintained that the offer 
gave shareholders a chance “to 
run with a company which has 
proved it can make profits.” 

Mr Dale, however, argues 
that Dale— which made losses 
£961,000 in 1985-86, but a 
£539,000 profit in the first half 
of 1986-87— was already on the 
recovery road and that the Sun- 
leigh offer “is a year too late.” 
The company announced some 
£2m-worth of orders yesterday, 
including one from Pakistan. 


First day 
premium of 
30p seen 
for Rolls 

By Richard TwiUai 

ESTIMATES of the Hkely 
premium on shares in Rolls- 
Royce, the state-owned aero- 
engine maker, moved np 
yesterday in the wake of 
Thursday's last-minute stam- 
pede of applicants and yester- 
day's rise in the stock market. 

It is expected that the 8Sp 
partly-paid shares will end 
first day dealings on Tuesday 
May 19 at a premium of 36p 
or more if present Mock 
market conditions hold. 

Cleveland Securities, the 
licensed dealer making a grey 
(unofficial) In the 

shares, was offering to buy at 
122p and sell at 125p. But it 
said it was dealing only with 
institutional clients in lots of 
25,000 shares or more. 

The surge of interest in the 
offer in the ran-up to Thurs- 
day's dose appears almost to 
have overwhelmed the 
receiving banks. Yesterday 
Samuel Montagu, the mer- 
chant bank sponsoring the 
flotation, sakl it would he 
tumble to give any indication 
of the response before mid- 
day today. 

However, the offer has 
clearly been heavily over- 
subscribed and a severe 
rationing of shares Is Inevit- 
able. The Government still 
hopes to avoid a politically 
unpopular ballot, but has not 
been able to role It out. 

Poor form, chaps— Page Y 


Rivals increase terms 
in battle for Garnar Booth 


MEPC faces delay on Oldhai 


BY PAUL CHEESERIGHT, PROPERTY CORRESPONDENT 


NEPCs bid to gain total 
control of Oldham Estate, the 
property group built up by Mr 
Harry Hyams, is now unlikely 
to succeed until at least mid- 
summer. 

Mr Hyams yesterday wrote to 
shareholders again urging them 
to delay acceptances of the 
MEPC offer until an indepen- 
dent valuation of the group’s 
properties has been completed. 

This valuation, to be under- 
taken by Debonham Tew son 
and Cbinnocks, could take 
between eight and 12 weeks. 
Even then there is no guaran- 
tee that Mr Hyams will be pre- 


pared to accept the MEPC offer 
for his personal stake of 
slightly less than 30 per cent in 
Oldham. 

MEPC gained effective con- 
trol of Oldham when it bought 
the 8R3 per cent stake of Co- 
operative Insurance Society. It 
then made a full bid for 
Oldham based on a formula re- 
lated to the net asset value of 
each Oldham share at Septem- 
ber 30 1988. 

This offer valued Ol dham at 
between £531.4m and £ 620.9m. 
depending on the property valu- 
ation. At that stage, the Sep- 
tember 1986 valuation had not 


been done. The agreement be- 
tween MEPC and CIS provided 
for an independent valuation 
and this is what is about to take 
place. Oldham will take part in j 
the briefing of Pebenham 
Tews on. 

Oldham, in this context, 
effectively means Mr Hyams 
because other shareholders con- ; 
trol some 2 per cent of the 
equity. 

Meanwhile four MEPC direc- 
tors have been appointed to the 
Oldham board, but they will 
take no part in assessing, from 
the Oldham point of view, the 
new valuation of the company’s 
portfolio. 


Tay rights 
to raise £5.9m 

Tay Homes, Leeds-baaed 
USM-quoted house builder, 
is making a rights issue of 
L78m ordinary shares of 25p 
each at 345p per share to 
raise £a£m. 

The proceeds will be used 
to provide finance for the 
future growth of the group 
qnri the increased working 
capital requirements. 

The whole Issue— -on the 
balds of one new ordhuxy 
for every three held — has 
been underwritten by 
Basque Paribas Capital 
Markets «nd the brokers ace 
Quilter A Co. 

The Mr Trevor Spencer, 
chairman, said that pre-tax 
profits for the year to June 
30 1987 would not be less 
than £2-85m — a 53 per cent 
Increase cm the £L86m last 
year. He added that he 
-expected the final dividend 
am the enlarged issued 
capita) to be not lower tiutn 
last year’s 3.71p. 


BY NIKKI TAIT 

THE eight-month battle for 
control of Garnar Booth, the 
leather manufacturer, took two 
new twists yesterday, with rival 
suitors Hillsdown. Holdings, the 
acquisitive food-to-furnitura 
poop, and Pittard, another 
leather company, both increas- 
ing their offers. 

Hillsdown was the first to 
make its move, upping its cash 
terms from 255p to 300p. and 
its paper exchange to 21 Hills- 
down for 20 Garnar (previously 
20 for 21). With Hillsdown 
shares at 8p higher at 280p the 
paper terms, value each Garnar 
share at 294p. The revised cash 
offer puts a price-tag of £29. 7m 
on the company. 

Hillsdown followed Its 
increased offer with, some rapid 
share purchases, taking its 
stake in Garnar from 28 per 
cent to 36£7 per cent. 

Meanwhile, the Garnar board, 
which hotly rejected an initial 
bid from Strong A Fisher last 
autumn, agreed terms with 
Pittard in March, remained on 

the fence when Hillsdown en- 
tered the fray just over a week 
ago, finally came down on the 


Hillsdown side. . 

It agreed to recommend the 
Hillsdown offer, with chairman 
Sir Kenneth Newton maintain- 
ing that, while “we recognise 
the benefits which would have 
obtained from our merger with 
Pittards, we believe that being 
a part of the Hillsdown group 
wiR enhance the prospects of 
Garnar Booth.” 

The position, of the Gamer 
board has been complicated by 
its friendly relations with both 
groups. During the Strong bid. 
which was withdrawn halfway 
through a Monopolies and Mer- 
ger commission inquiry, Garnar 
bad talks with Hillsdown. 
Pittard, however, also came out 
in support of Garnar when the 
latter was arguing that the 
Strong bid should be referred. 

In the late afternoon Pittard 
also revised its paper-only 
terms. The company is now 
offering 93 of its own sbarcs 
for every 100 Garnar. which 
with Pittard down lp at 324p, 
values each Garnar at 3Q1.3p. 
Hill Samuel, which is advising 
Pittard, picked up 287,500 
Garnar shares at 300.75p or 2£ 


per cent of the equity. Zt 
already owns I cent. 

The immediate response from 
Mr Harrr Solomon, chairman 
of Hillsdown. was that the 
marginal advantage of the 
Pittard paperonly teftr* was 
irrelevant. 

"I cannot see that tills is 
going to make much difference 
to abJWboJdcw." he commented 

However. Pittard has been 
arguing strongly that the HUAi- 
dflwn bid should be referred 
to the monopolies commission, 
on the ground* that the 
two companies' fdhnongery 
interests would take a domi- 
nant share of the domestic 
sheepskin market. 

Together Hillsdown and 
Garnar would have seven fell- 
mongeries. Garnar used about 
SLSm afririS out of a total kill 
of 15m last year and will use 
about 17m this year. Hillsdown 
has not given figures, but says 
its awn abbatoirs produce only 
10 per cent of the klU of 
whies less than half goes to its 
own fellmongeries. 

See Lex 


Gerrard buys Vivian Gray 


BY GRAHAM DELLER AND CLIVE WOLMAN 


Gerrard A National Holdings, 
UK’s largest discount house, has 
agreed to buy a controlling 
stake in Vivian Gray A Co stock- 
brokers. 

Gerrard is to acquire a stake 
of at least 75 per cent for less 
than £L25m. The rest of the 
equity is to be retained by 
directors and senior executives 
of the firm. 

On Thursday, the Bank in 
Liechtenstein announced that it 
was abandoning its proposals 
to acquire Vivian Gray which 
were first announced last 
October. This followed an 


approach to Gray by Gerrard 
A National. 

Gray has been a member of 
the Stock Exchange since 1877, 
and operates as a pure agency 
broker from two London aad 
six provincial offices. It claims 
to have 20,000 private clients 
and to advise on the investment 
of funds worth about £lbn. 

According to Mr Roger Gibbs, 
chairman of Gerrard: “We 
have been on the look-out for 
this type of opportunity where 
there would be an add-on effect 


There should be no culture 
shock because we have known 
the people at Vivian Gray for 
some time.” 

Gerrard A National has 
recently been seeking diver- 
sification opportunities in 
anticipation of the changes due 
over the next two years in its 
core business, the discount 
market Since October, it has 
been a market-maker in gilt- 
edged securities, an activity 
from which it says it is making 
a profit It also owns a futures 
ami commodity broker. 


British Gas calls for payment 


BY LUCY KHAAWAY 

BRITISH GAS is placing ad- 
vertisements in tomorrow's 
newspapers to remind its 
shareholders that the second 
instalment on the shares is due 
by June 9. The advertisements 
will also appear on Monday. 

Since the company was pri- 
vatised last November about 
one-quarter of the original 
shareholders have sold their 
Shares. •• The current register 
contains 3.3m names, compared 
with the 4.4m who bought the 
shares at the outset Investors 


Ballot to decide Sock 
Shop share allocation 


who have sold since then could 
have made a profit of op to 
53p. on the 50p partly paid 
shares. 

Analysis of the register shows 
that the vast majority of share- 
holders — - about 2J3m — - own 
less than 500 shares, which 
would have required a maxi- 
mom outlay last year of £250. 
Only 2,500 own more than .1,000 
-.shares, slightly more than one- 
third of the company » now 
owned by private investors, of 
whom two-thirds are men, and 
one-tHrd women. 

The second call is for 45p a 
share, and will raise a total of 
flJJbn for the Government The 
final call on the Viares, which 
were priced at 135p, is due in 
April next year. 


On Monday. British Gas will 
send out letters to shareholders, 
advising them of the exact 
amount due. It is concerned 
that as many as 200,000 people 
may have moved house since 
last November, and is urging 
them to check their post at 
their old addresses. Anyone 
who has not made the payment 
on time could lose the right to 
the - shares, dividends and 
vouche rs, the com pany warns. 

KAZLEWOOD EUROPE, a 
subsidiary of acquisitive group 
Hazlewood Foods, has bought 
50 per cent of Fri d’Or, a 
Dutch frozen-food company, for 
£4.18m_ It has an option to 
acquire the rest of the com- 
pany. 


Polymark shares drop 
after poor second half 


BY GRAHAM DELLER 

SHARES IN Polymark Inter- 
national the laundry equipment 
and agricultural machinery sup- 
plier fell 7.5p to 29.5p yesterday 
as the market expressed dis- 
appointment over the group’s 
showing in the second half of 
the year. 

Group turnover in the 12 
months to December 1986 rose 
21.8 per cent from £20 .93m to 
£25.5m. After interest charges 
of £480,000 (£586.000), profits 
before exceptional items came 
out at £352,000 against £131,000 
last time — marginally below the 
figure of £364,000 reported at 
the interim stage. 

Pre-tax profits of £142,000 
(£8,000) were arrived at fol- 
lowing an exceptional charge 
of £167,000 (£70.000), largely 
made up of redundancy costs, 
and £43,000 (£53,000) as the 
group’s share of losses incurred 
by its Japanese associate. 

After tax of £321,000 against 
last year's credit of £93,000, 
minorities and an extraordi- 
nary debit of £60,000 relating 
to the disposal of its Dutch sub- 
sidiary, the loss per lOp share 
increased to 7Ap (4.52p). 

There is again no dividend. 
Mr Michael Holt, finance direc- 
tor, said that arrears on the 
preference dividend now 
amounted to £1.085m. 

Nevertheless, the directors 
remained confident that Poly- 
mark's recovery potential was 


undiminished: "the strategy 

adopted over the past three 
years has involved reorganisa- 
tion, rationalisation, the devel- 
opment of new products and 
markets and disposal of those 
operations which do not fit in 
with longer term objectives. We 
are in a better commercial 
position as evidenced in 1986 
by an encouraging increase of 
sales activity in all divisions/' 

The laundry division made 
profits of £432,000 (£384,000) 
and increased sales of process 
equipment by 27 per cent. Po Ly- 
ra ark France lifted profits from 
£392,000 to £574,000. 
tural operation incurred a 
reduced deficit of £289,000 
(£364,000). It bad operated 
" well below capacity ” for most 
of the year but made good pro- 

E ess in the final quarter 
Iped by the establishment of 
trading links with a North 
American concern. The division 
should be profitable in 1987, Mr 
Holt said. 

Polymark's Technographics 
division lost £365,000 against a 
loss Of £281,000 in 1985. This, 
according to Mr Holt was 
attributable to the higher- than- 
expected capital cost of develop- 
ing its computerised garment 
control system for laundries, 
and moves to “ enhance the 
capability at the Wembley 
factory.” 


Police in probe at Gee/Rosen 


Gee/Rosen, the USM-quoted 
clothing wholesaler and 
retailer, yesterday announced 
that a police investigation was 
under way Into the disappear- 
ance of more than £100,006 
worth of stock. 

As a result, profits for the 
year are unlikely to be larger 


than the first half’s £159,000, 
compared with the previous 
year's £403,000. The company 
.said yesterday that finished 
garments seem to have dis- 
appeared over a period of six 
months. 

The group’s shares dosed 
down 10p at 43p. 


DIVIDENDS ANNOUNCED 


Date Correa- Total Total 
Current of ponding for last 
payment payment div year year 

Brewtnakert nil — 0.5 0.3 OR 

Loriin Elects* 2 — 1.5 3 2.5 

W. A. Tyzack Jnt OJ35t May 27 0.8 — 2 

Dividends shown pence per share net except where otherwise 
stated. * Equivalent after allowing for scrip issue, t On capital 
increased by rights and/or acquisition issues. % USM stock. 
$ Unquoted stock. 


Halifax issues 
£50m swap-rate 
Eurobond 

By Alexander Nicoll 

Halifax Building Society yester- 
day issued a novel £50m Euro- 
bond bearing a fixed 8.75 per 
cent coupon for the first three 
years and a floating rate of 17.5 
basis points above London In- 
terbank offered rates for the 
succeeding two years. 

Led by Morgan Grenfell, the 
bond was priced at 101}. 

The Halifax, which has 
become an active borrower in 
the Euromarkets, is taking 
advantage of attractive rates to 
carry out three-year swaps into 
Prudential Corporation, UK 
insurance group, also tapped 
the Eurosterling market yester- 
day with a £150m 20-year issue 
carrying a 9j per cent coupon 
and price of 100}, led by War- 
burg Securities. 

See Lex 

North Housing 
issues zero 
coupon bonds 

ty Philip Ceggan 

North Housing, one of Bri- 
tain’s largest housing associa- 
tions, has become the first 
borrower to raise flnanw* via 
a zero coupon bond in the UK 
domestic market. 

The association is raising 
£65m to fund the building of 
2,000 houses for rent. Fourteen 
local authorities will transfer 
land to North Housing in 
return for the right to nomin- 
ate 50 per cent of the tenants. 

North has issued a combina- 
tion of three bonds, all with 
long-term maturities. via 
sponsors Janies Capel. There 
are two zeroes 'with nominal 
values of £80m ana £110m 
maturing in 2019 and 2027 
respectively and a partly-paid 
£B62Bm stock maturing in 2037 
and carrying a coupon of 8.75 
yield of 9.83 per cent. 

The 2019 zero was issued at 
about £4.60 per £100 nominal 
value and the 207 zero at 
£2.15. Zeroes offer private in- 
vestors the chance to roll up 
capital growth without paying 
tax until the bonds are re- 
deemed or sold. 


BY RICHARD TOMKINS 

THE FLOTATION on the USM 
of Sock Shop, socks and tights 
retailer, has proved so popular 
that the vast majority of 
applicants will have to be 
turned away. Even the success- 
ful applicants will receive only 
a tiny proportion of the shares 
for which they applied. 

The relatively small offer 
for sale was 53 times sub- 
scribed, with applications worth 
nearly £2 60m chasing just 
£4Am worth of shares. As a 
result, 8 ballot will be held 
among the 76,500 applicants 
to eliminate all but 16,000 of 
them with weighting to give 
bigger applicants the better 
chances. 


People who applied for 100 
shares will receive 100, but will 
stand the lowest chance, 25-to-l 
against, of winning in the ballot 
Successful applicants for 101 to 

1.000 shares will receive just 
140; 1,001 to 6,000—170; 8,001 to 
10,000—200; 10,001 to 180,00— 
about 2 per cent of the number 
applied for. 

Applicants for more than 

180.000 shares win not be sub- 
ject to a ballot. Those seeking 

190.000 shares will receive 
3,750 and those seeking more 
than 190,000 will receive about 
L88 per cent of the number 
sought. 

Employees will receive a 
total of 82,870 shares. 


Tesco raises its Hillards stake 


Tesco, the supermarket 
group which Is waging a hostile 
bid for Yorkshire-based Hil- 
lards, yesterday picked up a 
further 2£5m shares in its tar- 
get, lifting its stake from just 
over 13 per cent to 18JS per 
cent. 

The purchases came as 
Hillards posted its final letter 
to shareholders, stating that It 
sow has written commitments 
from holders of 30 per cent of 
its shares. According to Mr 
Peter Hartley, Hillards* chair- 
man, these have come from 
some 200 shareholders. In 


response to Tesaj’s earlier, 
lower offer, holders of 28.4 per 
cent . of Hillards shares— 
primarily family, family trusts 
and friends — rejected the 
terms. 

Both sides, meanwhile con- 
tinued to fire final salvos at 
shareholders. 

"The commercial logic of the 
merger has been overwhelm- 
ingly recognised,” Ur Ian 
MacLaurin, r.halwnnaa of Tesco, 

claims in his letter. 

“Te sco’s increased offer is 
simply inadequate,” Mr Hartley 
writes. 


COMPANY NEWS IN BRIEF 


BAT INDUSTRIES, tobacco, 
retailing and financial services 
group, yesterday said it had 
decided to streamline its opera- 
tions in West Germany to bring 
them more In line with market 
requirements and this would 
result in more than 200 job 
losses. Through its subsidiary 
BAT Cigarettenfabrlken the 
company said it had about 23 
per cent of the cigarette market 
in West Germany. It planned 
to close its factory at Ahrens- 
burg, near Hamburg; by mid- 
1989 and to concentrate Its 
activities at Bayreuth and West 
Berlin. 

CAM CO, US-based oil services 
subsidiary of Pearson, yester- 
day announced that It had 
completed the acquisition of 
most of Reed Tool, a leading 
manufacturer of drilling bits, 
from Baker International. The 
price was 839.9m (£23.75m), 
subject to certain adjustments. 
Pearson also owns the Financial 
Times. 

JAYKEEL Investments sow 
holds slightly more than 8 per 


cent of Youghal Carpets, the 
troubled Irish carpet manrife^. 
turer, which is in receipt of an 
agreed offer from textiles 
group Coats Vlyella. The 1.7m 
shares are registered in the 
name of Barclays Nominees 
(Guernsey). 

ROBERT H. LOWE (sports, 
leisure, women’s and children’s 
wear and principal UK maker 
to the Adidas brand) has ac- 
quired Leonard for £220,000 
satisfied by the issue of 14L985 
new Lowe ordinary. Two 
further payments in shares may 
be made depending on net 
assets valuation or profitability. 

BLACKWOOD HODGE 
(Canada) (earthmoving con- 
struction and mining equip- 
ment): Pre-tax losses of 

C$295,000 (£132.000) against 

C$110,000 for three months to 
endMaroh. Turnover and rentals 
$3Lfi9m (925.66m). No tax. 
Losses per share 12 cents (5 
cents). Decreased margins gave 
rise to the increase in losses 
typically experienced in the 
first quarter, directors said. 


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9 


Financial Times Saturday May 9 1987 


ARGENTINA 


IN THE coarse of history, there 
are certain events which prove 
to be decisive-in the destiny 
of a nation. The Easter rebel* ■ 
lion by the Argentine army was 
precisely such an event 
Three weeks after the revolt 
the Government of President 
Rani Alfonsia has yet to find 
a definitive solution to the 
crisis created when 100 or so 
junior commando and para* 
troop officers . seized ■ the ' 
Infantry School In Buenos 
Aires on Good Friday. 

Han gi ng in the balance is the 
consolidation of a system 
founded on free elections and an 
independent Judiciary, while the 
propect of the armed forces con* 
rinning to be a power behind 
the throne — if not occupying 
the seat -Itself — remains a 
cause for' concern. 

Xt is now clear that the officers 
who launched the rebellion, de- 
manding an end to the human 
rights trials in the country, 
were not an isolated group of 
disgruntled adventurers. 

That much became obvious 
from a visit to neighbouring 
army units, where other junior 
officers openly expressed sup*, 
port; and by the fact that Presi- 
dent Alfonsin was obliged even- 
tually to negotiate the sur- 
render of the rebels because 
other army units were reluctant 
to snpress them. Half of the 
Army chiefs of staff were later 
sacked for “ failing to maintain 
command and control of their 
units’*, according to a dose 
presidential aide. 

The crisis had an even more 
serious dimension, says Mr 
Antonio Berbongaray, a ruling 
Radical Party Senator and chair- 
man of thin Senate Defence 
Co mmitt ee: “Although the 

demands for an end to the. trials 
were genuine for the most part; 
there were others behind the 
rebels, and utilising them, who 
had more concrete to pre- 
pare tile ground for a military 
coup at a later stage.” 

In the event; the plotters 
were defeated by the fact that 
all the political parties, the 
business sector and trade unions 
dosed ranks behind the Presi- 
dent. And on tiie international 
plane, solid support for Presi- 
dent Alton sin was expressed by 
governments as diverse as the 
US, the Soviet Union and Cuba. 
The rebels were isolated. 

So why did they rebel? One 
largely overlooked fact is that 


The fires 
continue to 



By Tim Coone in Buenos Aires 


the Government itself helped to 

'precipitate the crisis. 

Ih an attempt to bring an end 
to the drawn-rat process of 
human rights trials, which were 
creating a growing wave of un- 
rest within the armed forces, 
a law was passed at the end of 
last year known as the pttnto 
final It established a two- 
month time limit (ending in 
February) for the courts to 
initiate . . legal proceedings 
against officers and ranks 
suspected of abuses during the 
"dirty war" of the 1970s. 
During this period, more than 
9,000 persons disappeared fob 
lowing arrest, by the security 
forces and thousands more 
suffered torture. 

The aim of the ptmto final 
was to limit the number of trials 
to between 20 and 80 exemplary 
cases of senior officers and 
notorious torturers, thereby 
satisfying some of the hue and 
cry for justice to be dime while 
preventing a military rebellion. 
A former Defence Minister' in 
the present government, Mr 
German Lopes; told the FT last 
year that such an agreement 
between the radical party and 


during the “dirty war." 

Although many of the accu- 
sations were made on incom- 
evidence, to ensure that 
was done the courts 
began investigatory hearings 
against more than 350 military 
and police personnel. This set 
the time bomb ticking and it 
exploded over Easter. 

The problem for the Govern- 
ment is how to move forward 
now, surrounded by a minefield 
of legal and political obstacles 
created by the rebellion. 

Demands during the mutiny 
included an end to the trials 
and dismissal of the Army high 
command. However. Mr Adolfo 
Gass, a leading Radical senator 
who talked to the rebels (and 
faced harsh criticism from his 
colleagues for doing so) says: 
“There is no doubt that the 
rebels were also demanding a 
total amnesty." This would 
have included the generals who 
led tiie j un t a s from 1976 and 
organised the “dirty war." They 
were imprisoned in 1985. 

An amnesty has been ruled 
out; though, by Radical Party 
leaders. Instead a solution is 



Soldiers of the 14th Airborne Infantry Regiment- 
centre of the rebellion 


unit at the 


cktS !£SS»f 


before President Alfonsin took 
office in December 1983. 

However, according "to a 
federal court judge, instead of 
drastically reducing the num- 
ber of trials, the time limit 
produced the opposite result. 
The courts were inundated with 
accusations against all ranis 
from generals to sergeants, but 
mostly against middle-ranking 
officers in charge of various 
local and regional operations 


principle of “due obedience," 
under which junior officers 
might be absolved of blame for 
abuses on the basis that they 
were following orders. 

On this point, however, Mr 
Gass says there are deep divi- 
sions within the party. In the 
trial last year of a police chief. 
General Ramon Camps, and five 
subordinates, the capital’s 
federal court established that 
homicides and torture carried 
out by junior officers were 


punishable offences, although 
lighter sentences were passed 
reflecting a recognition of 
possible coercion by senior 
officers. 

The sentences are being 
appealed in the Supreme Court 
and the Government’s hope Is 
that a favourable ruling will 
obviate the need for special 
legislation to acquit the officers. 
But according to one of the 
Camps trial judges: “Even if 
the Supreme Court were to 
make such a ruling, it is not 
binding on the federal courts. 
It would not substantially 
reduce the number of officers 
cited to testify.” Each case 
would have to be appealed 
separately, which could take 
years. 

Even more emphatically, he 
added: “If the President 

deems it politically necessary 
to safeguard the country’s insti- 
tutions by absolving the junior 
officers from responsibility in 
cases of homicide or torture, 
then it will have to be done by 
creating a new law through 
Congress, which the courts will 
then have to follow. Under 
existing law, such a ruling by 
the courts is not possible with- 


APPOINTMENTS 


Changes at Noble Lowndes 


NOBLE LOWNDES, a HOI 
Samuel Group company, . has. 
made the following appoint- 
ments: Mr Beit Carroll becomes 
managing director • at Noble' 
Lowndes International and a 
director of' Banaander Noble 
Lowndes.’ "Ht '-is also - on the 
boards of Noble Lowndes Pen- 
sions and its^coipoatr trustee 
companies.: 'He ■-Joined’ Noble 
Lowndes h--B69; : Mr Robin 
Hampshire Joins the' board of 
Noble . Lowndes Pensions as 
director responsible for the com- 
pany’s smith west region, based 
in Bristol. He replaced Mr Tony 
Reader who takes over from Mr 
CaxToll os . director responsible 
for the London City region. 

Mr Tom Geoghegan has been 
appointed managing' director of 
1 and O 


the board of Lowndes Associated 
Pensions. Mr David Millard and' 
Mr Robert Poole have joined the 
board of Noble Lowndes Benefit 
Consultants. Appointed to tiie 
board of Noble Lowndes Manage- 
ment Services are Mr Richard 
Braybrooke (personnel director 
— UK), Mr Robert Ingram 
1 (finance director— WC) and Mr 
Byron .West : - (communication 
director). Mr - Don Bray,. -Mr 
Michael VDantD, Mr Stan Gee 
and Mr Noel Hoffman have been 
appointed directors of Irish Pen- 
sions Trust. 

★ 

Hr John GbmfleM, commer- 
cial director of Earls Court and 
Olympia, has been appointed 
director of OLYMPIA, in an en- 
ed command which will in- 
Olympia 2 and tbe new 


larged 

dude' 


Cubie Wood and Co., actuarial _ _ 

wing of tbe Noble Lowndes . Olympia conference centre, 
organisation^-:. Mr Graham. Har* Chris Vaughan, 'lettings 
man, Mr Andrew Payne and Mr 
Xan WlUUxnson have been made 
directors. Mr Bay Coles, Mr Alan 
Jenklnson; Mr Gordon Peto, Mr 
Tony Redshaw and Mr- Sid 
Wright have been appointed to 


of Earls Court and Olympia, 
.comes sales director. 

♦ 

At A. GRANTHAM Mr John 
Mott; formerly director of inter- 
national trading for the Dunlop 


footwear group, becomes manag- 
ing director. Mr Roger Lawranee, 
former group treasurer of C. and 
J. Clark, becomes finanHni direc- 
tor and Mr Derek Baker leaves 
bis own consultancy to become 
production director. 

' • : ■ ■ it 

Following the death, of Mr 
Dennis Poore, chairman of LON- 
DON “TAXIS INTERNATIONAL, 
Mr Jamie Borwiek* managing 
director of Manganese Bronze 
Holdings, has been appointed 
chairman. Mr Barry Wlddowson, 
managing director of Carbodies, 
becomes group managing direc- 
tor. and will be Joined by Mr 
Rod Turner as finance director. 
Mr Turner was finance director 
with Land Rover. Mr Grant 
Lockhart has left tbe company 
to pursue other interests. 

★ 

Mr Alan Hollingsworth will be 
joining DAIWA EUROPE 
FINANCE as a director respon- 
sible for the treasury. He was a 
director of Hill Samuel and Co. 
* 

Mr Bob Wiper has become 


THOMAS JOURDANpIc 


“I believe that 1987 will bean exciting year 
for us. After live years ol continued growth I 
feel the time is ripe for major expansion and 
I am hoping to lay down a base this year to 
make that expansion possible." 


FINANCIAL HIGHLIGHTS 

hueue 

1986 

1985 

1984 

1983 

-• ■ 

86/85 

£’000 

rooo 

£'000 

£000 

Turnover 

+40.5%. 

15,750 

11,211 

. 8,665 

7,307 

Operating profit 

+49.3% 

•2,225 

1,485 

964 

764 

Profit before tax 

+52.5% 

2,065 

1,353 

837 

672 

Dividends - • ■ 

+29.5% 

549 

424 

310 

279 

Capital employed (shareholders 
fands phis borrowings) - 

+31.6% 

4,502 

3,420 

2,399 

2,282 


1982 

POM 


6,150 

563 

470 

244 

1,812 


Earning per share 
Net assets per share 


+34.6% 

+33.0% 


12.65p 

30.2p 


9.40p 
22. 7p 


4-85p 

14.9|p 


3.7p 

16 . 0 p 


3.6p 
12. 3p 



Profit before Ttocrwanw 




Ul®- 






JQ.5 

J 2 


19S3 190 ISM 1985 1S06 


Earnings per Share Peace 


U* 


«*t- 




1982 190 ISM 1985 1968 


“Trade is now more buoyant and the year as 

<1 whole looks l>OOd/ Uvhn- McNair. Chairman 


SPorkStriet, Windsor, Be&sJtirtSIAlLU, 


managing director of PICK- 
FORDS mainstream UK 
removals, Mr Keith Austin 
managing director, alternative 
brands, and Mr Andrew Hawkea 
director, international opera- 
tions. Mr Rod Moysen has been 
promoted from divisional 
director to managing director of 
Pickfords Industrial. The 
company is part of the National 
Fteight Consortium. 

★ 

- Mr Ian Ben, general manager 
— operations of tiie National and 
Provincial Building Society, has 
been appointed managing direc- 
tor of TOWN AND COUNTRY 
BUILDING SOCIETY from June 
L He succeeds Mr Joe Bradley 
who is to become managing 
director of Prudential Property 
Services. 

★ 

Mrs Jean Denton has been ap- 
pointed to t he boa rd of BRITISH 
NUCLEAR FUELS as a part- 
time, non-executive director. She 
is a former director of external 
affairs of the Austin Rover group 
and managing director of Heron- 
drive. Mrs Denton is deputy 
chairman of the Black Country 
Development Corporation, a 
director of Burson-Harsteller and 
the Ordnance Survey, and a 
board member of UK 2000, the 
government environmental initia- 
tive chaired by Mr Richard 
Branson. 

* 

Mr Alan E. Payen has been 
appointed sales director of the 
Halnxa safety division company, 
CROWCON INSTRUMENTS. 

* 

M r Ken Fag* has joined 
EXCESS INSURANCE GROUP 
as general manager life. He re- 
turns to Excess after seven years 
during which he was the actuary 
with Am b assador Life. 

*• 

Three companies in the MER- 
CANTILE HOUSE GROUP inter- 
national financial services have 
made the following appoint- 
ments. At Alexanders Laing & 
Cruickshank Gilts, Mr C. P. 
Edwards, Mr T. J. Griffiths, Mr 
P. A. I. Hills and Mr R. K. 
M a mies become directors. At 
Alexanders Discount Mr P. L. 
Fava is made managing director 
and Mr H. D. B. Frewer manager. 
Oppenheimer Fund Management 
has appointed Mr Paul C. Hyde 
to the board of its subsidiary, 
Oppenheimer Trust Management 
Limited. Mr Hyde, sow sales 
director, was formerly National 
Sales Manager for Oppenheimer. 
★ 

LAWSON MARDON has made 
tiie following changes. Mr J. F. 
Brock, managing director, Smith 
Brothers (Whitehaven), becomes 
nonexecutive deputy chairman 
of that company from August 
He is resigning from tiie manag- 
ing directorship an medical 

advice. Mr D. & Beeby, manag- 
ing director, Mar-don Illingworth, 
will be appointed managing 
director, Smith Brothers (White- 
haven) in August. Hr R. B. 
WnHams, deputy managing 
director. Harden Illingworth, 
becomes managing director of 
that company in June. 

Mr Edward Beafieid has joined 
STEWART WRIGHTSON as 
chairman of Golding Stewart 
Wrights on Marine, and a director 
of Stewart Wrightson. 

★ 

JOSIAH WEDGWOOD A SONS 
has made the following changes. 
Mr Robert J. Davies joins the 
group on May 11 as director of 
finance. He was a director of 
Coopers & Ly brand Associates. 
Mr Fred de Cwfobadie, formerly 
group sales director, becomes 
commercial director of the group. 
*- 

Mir Peter Cooper has been 
appointed executive of the 
B55 GROUP in succession to Mr 
Bebin SeUiek who has retired. 


out undermining the inde- 
pendence of the judiciary." 

In the absence of unity 
within party ranks on the issue, 
intense discussions have been 
taking place as the President 
seeks support front leaders of 
the Peronist opposition. But 
Mr Diego Guellar, leader of 
the Peronist deputies in the 
Lower House, says “The Radi- 
cals will have to pay the politi- 
cal cost of introducing such a 
law. They will not receive 
support from us." 

A quick solution is seen by 
the Government as imperative. 
In the absence of a legal or 
political brake to the trials, the 
spectre of renewed unrest in 
the barracks has sent the Gov- 
ernment in tbe only other avail- 
able direction — towards a co- 
alition government including 
Peronist opponents. 

Indeed, with hindsight, it 
appears that President Alfonsin 
saw the military crisis coming 
and that his offers last month 
to create a coalition govern- 
ment and include a trade union 
leader in his economic cabinet, 
were made with that danger in 
mind. The Social Contract, 
which he has been piecing to- 
gether hastily with the trade 
unions (controlled by the 
Peronists) and business 
leaders, appears to involve 
abandoning price and wage con- 
trols and overturning tiie poli- 
cies of his economic advisers, 
led by Mr Juan Sourouille, 
Economy Minister, who have 
nursed along the “Austral" 
austerity plan for almost two 
years. 

Compromises on economy 
policy seem to be the likely 
price the Government will have 


to pay In order to present a 
united civilian front should the 
army once again try to defy tbe 
system. Tbe Easter rebellion 
was defeated because there was 
no support for it outside the 
army. If there is another 
mutiny. President Alfonsin is 
making sore no-one will stab 
him in the back if he once 
again has to appeal for national 
unity. 

Should the army’s “young 
Turks" be faced down by this 
strategy, Mr Berhongary is con- 
fident that deeper probiVms in 
the armed forces' structure can 
be dealt with more easily. 
“ Argentina’s military has to be 

scaled down and its role rede- 
fined, ” be says, which would 
■require reorienting its training 
programmes. 

The armed forces’ fundamen- 
tal problem, he says, lies in the 
fact that, since the last Radical 
government was overthrown by 
a military coup in 1930. they 
have continually intervened in 
domestic politics and taken 
charge of internal security. A 
new defence law, to be discus- 
sed in Congress this debating 
season, aims to redefine the 
military's role as purely defen- 
sive against external threats. 

Diplomacy has greatly re- 
duced those threats. Two tradi- 
tional “war hypotheses" are 
now almost non-existent fol- 
lowing the resolution of the 
Beagl e Channel dispute with 
Chile--and the signing of 
economic integration agree- 
ments with Brazil. Only the 
Falkland Islands dispute with 
the UK remains and the Alfon- 
sin Government's commitment 
to a peaceful solution leaves 
the aimed forces practically 
without a purpose. 

Subsequent cuts in budget 
and manpower have further 
contributed to anxiety among 
the military. Mr Bernongaray 
believes these can he overcome 
by gradually ending conscrip- 
tion (only one in four youths 
are now conscripted) and pro- 
fessionalising the services 
through better education and 
more contact with civilian 
society. 

On September 6, the country 
goes to the polls for mid-term 
elections. Electoral politics 
have already begun to fragment 
the fleeting cross-party unity 
experienced during the 
rebellion. The opposition 
Peronists appear intent on mak- 
ing the Government pay a high 
price for what they term its 
“ ambiguous ” policy on the 
armed forces. 

A resurgence of unrest can- 
not be ruled out And although 
a further rebellion would not in 
itself spell the end of 
Argentina's democracy, if it 
succeeded in forcing the Presi- 
dent to utilise his power ot 
pardon to absolve tbe accused ■ 
military officers it would 
demonstrate once again tiie 
strength of the threat from ■ 
behind the throne. 


FIDELITY AMERICAN ASSETS N.V. 

BqflUmA OBkc Stbot Hrt w.e s Oort, Sated* 

Gaum, Nctiniiod ABtHJet 
NOTICE OF 

RECONVENED ANNUAL GENERAL ASSEMBLY OF SHAREHOLDERS 
M*j», 1967 

Plane lake * n»«r the Annul n—rpl Assembly of SknhgUm of FkSeUtv American 
Assets N.V. (the “Qjipontioa"J. origlniDy convened met adjourned on March 17, tfB?. mil be 
iceonvcaed and vlH tain piece et 2.00 pjo. at Sdntuxsnrcg Oral, Salinia, Curacao, Naherinadi 
Antilles, on May 39. 1387. 

The ap-nri* for this teconvenod Meeting wtH be the (or *jg> as nw gm.n a 

ca mm ed* spcafitaHy: 

L Rcpon of ihc Mmagoncat. 

2. Bedim of seven Misaspag DxrcUora- 

Tbe Chai rman of the Mowiffmail proposes tbe svekcUen of the Mowing seven abucg 
Managing Directors; 

Edwai-j C. Johnson 3rd Kmhi KaOkawa 

Wittmm L. Byroci John M. S. futon 

Quito A. Frucr H. F. van den Horen 

Amxo Hoklma & Trust 
Company N.V. 

3. Approve! ot the Balance Sheet and Profit mi Los Suteaeat for tbe fiscal yar ended 
November 30, 1986. 

4. RaUDeatiM d actum token bv tbe Managing Drawn since ihe lost Annul Assembly of 
ShmholdctK, including payment of an wenm dividend In respect of the fiscal year ended 
November 30, 1986 jum aulhonuboa of the Managing Directors to dedans addiuoml 
dividends to respect ol fiscal 198a if necessary io enable the Fund to quid) ter 
"ilaolbutor” status under United Kingdom ux la*. 

5. Kfltiflcauon ol actions totes by the Investment Manage? smee tbe bst Annual General 
Assembly of Shareholders. 

A (non of prosy may be obtained from: 


FulelitT International limned 
Pembroke Hall 
42 Crow Lane 
Pembroke. Bermuda 

Cbrapagnie Fidnelint 
!3, Boulevard de la Foisc 
Luxembourg 


Fidelity Inrenutiooal 
fC.1.1 United 
9 Bond Street 
Si. HdLicr. Jersey 
Channel l«lwis 


Amoco HoUidrs & Trust 
Company N.V. 

PC'. Bov iOS 

Oixm 

Netherlands Antilles 

Holders of registered shores nay vote by prosy by mailing a Iona of proxy obtained from the 
jpgltmiom toted above to the Corporauaa u the roOowaig address 
Fidrlrty American Assets N.V. 
c'o Atnaco Holdings A Trust Company N.V. 

P.O. Hot 30S 

Cumcao, Netherlands Antilles 

Holders of beam shores may icne bv prow bv imilrng a form of proxy and certificate of dcpcM 
far their shares obtained bom the i mutations lined above and filed with the Corporation si nr 
Curacao, Netherlands Antilles, address. AUenuuivdv, holders of bearer shares wishing to eterene 
their rights personally at the Meeting may deperac their sltem, or a crmfitaic of deposit therefore, 
wub the Corporation at Schtmegaiweg Oost. SaJtnp, Curacao. Netherlands Antilles, agaant receipt 
therefor, which recopi win entitle said bearer shareholder to exeretse such rights. 

A0 proxies (and certificates of deposit issued to hearer ibaretiokleni must be received bv the 
Corporation not bur than 1-00 pan. on May 29, 1987, m order to be used u the Meeting. 

By Older of the Management 
Quito T. M. Colls 
Secretory 



SPONSORED SECURITIES 

Groai Yield 


High 

Low 

Company 

Pries Change dlv.(p] 


P/E 

161 

118 

Asa. Bnt. Ind, Ordinary 

157 


0 

7.3 

4.6 

9-6 

1S3 

121 

Acs. Brit. Ind. CULS 

163 


0 

10 0 

6.1 



40 

28 

Armltflga and Rhodes 

38 


0 

4.2 

11.1 

5.3 

» 

64 

BBB Design Group (U5M) ... 

75 


0 

1.4 

1.9 

17.9 

230 

166 

Bardon Kill Group 

230 


0 

4.6 

20 

26.1 

147 

56 

Bray Technologies 

147xd 


0 

4.7 

3.2 

11.8 

13S 

75 

CCL Group OrdTnary ............ 

136 

+ 

1 

2.9 

2.1 

9-6 

107 

86 

CCL Group llpc Conv. Pf. ... 

101 


0 

15.7 

15-5 



136 

58 

Carborundum Ordinary 

136xdc 

0 

5.4 

3.9 

11.8 

» 

90 

Carborundum 7.5pc Pr 

94 


0 

10.7 

11.4 

— 

12S 

75 

Georg* Blair 

96 


0 

3.7 

3.9 

2-5 

176 

119 

lais Group 

120 


0 

18.3 

— 

— . 

125 

101 

Jackson Group 

125 


— 

6.1 

4.9 

8.5 

377 

290 

Jamas Burrough 

373 


0 

17.0 

4.6 

10.5 

100 

89 

Jamas Burrough 9 pc Pf 

94 


0 

12.9 

13.7 

— 

1035 

342 

Muliihouaa NV (AmstSE) 

605 

— 

5 

— 

— 

24.0 

407 

260 

Record Ridgway Ordinary 

407 

+ 

2 

1.4 

— 

8.2 

100 

83 

Rocord Ridgway lOpc Pf 

86 


0 

14.1 

16.4 

— 

91 

67 

Robert Jankins 

83 


0 

— 

— 

3.7 

89 

30 

Scruttons 

89 

.+ 

1 



— 



157 

67 

Torday and Carlisle 

157 


0 

5.7 

3.6 

9.5 

340 

321 

Trsvisn Holdings 

330 


0 

7.9 

2.4 

6.9 

91 

42 

Uni lock Holdings (SE) 

87 


0 

2.8 

3.2 

16.0 

144 

65 

Walter Alexander 

144 


0 

5.0 

3.4 

13.8 

200 

190 

W. S. Yearns 

19Qxd 


0 

17.4 

9.2 

19.0 

116 

67 

West Yorks. Ind. Hosp. (USM) 

110 

- 

1 

5.6 

5.1 

15.7 


Granville &. Company Limited 

8 Lovnt Lane, London EC3R 8BP 
Telephone 01-621 1212 
Member ofFIMBRA 


E 


Granville Davies Coleman Limited 
27 Lovar Lane, London EC3R 8DT 
Telephone 01-621 1212 
Member of die Stock Exchange 


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10 


INTL. COMPANIES and FINANCE 


Canadian trio joins gold’s big boys 


Financial Times Saturta? May 9 1987 

COMMODITIES AND AGRICU L TURE 

US MARKETS 




BY STEFAN WAG5TYL IN LONDON AND BERNARD SIMON IN TORONTO 


THE MERGER between three 
large Canadian gold mining 
companies, which was 
announced this week, will 
create one of the world's big- 
gest mining groups by stock 
market capitalisation. 

Placer Development, Dome 
Mines, and Campbell Red Lake, 
will together be worth 
US$4. 6 bn, at current share 
prices. Only BHP, the Austra- 
lian natural resources group, 
Anglo American, the South 
African gold and diamonds 
combine, and Rio Tinto-Zinc, 
the UK mining, energy and in- 
dustrial company, are larger. 

The comparisons dramatically 
show the high prices Investors 
have been prepared to pay in 


LARGEST GOLD PRODUCERS 
OUTSIDE SOUTH AFRICA 

Estimated 

1987 

output 

ounces 

Flacer/Dome/Campbfl II 


(Can) 

1m 

Ok Tedl Mining 


(Papua New Guinea) 

7m 

Home: take (US) 

680,000 

Newmont Gold (US) 

580,200 

Lac Minerals (Can) 

534,000 

Bougainville 


(Papua New Guinea) 

530,000 

Echo Bay (Can) 

480,000 

Western Mining 


(Australia) 

380,000 


the past year for gold pro- 
ducers with mines outside 
trouble- torn South Africa. 

They also illustrate haw a 
boom in gold exploration and 
development in the 1980s has 
created a new generation of 
powerful mining companies, of 
which Placer Development is 
the outstanding example. The 
merger is only one of a number 
of corporate acquisitions and 
mergers In which these fast- 
growing groups have been 
involved. 

If the deals are completed as 
planned, Placer Development's 
shareholders will own 45 per 
cent of the new group: Dome 
Mines' shareholders will have 
37 per cent and Campbell's 18 
per cent. Dome's 50.2 per cent 


holding in Campbell will be 
cancelled. 

The combined group's gold 
output in 1987 is likely to be 
lm ounces — making it one of 
the two largest Western world 
producers outside South Africa. 

The Canadian trio will out- 
strip several old-established 
companies including Home- 
stake of the US, for long the 
largest North American pro- 
ducer, with a probable output 
of 680,000 ounces this year. 

However, size is no guarantee 
of success. Tbe motives of the 
three companies in combining 
are important as are their plans 
for working together. Financial 
analysts are particularly 
intrigued by the decision of 
Placer, a fast-growing 
Vancouver group with a string 
of ambitious schemes to its 
name, to link with two rather 
conservatively managed Toronto 
companies. 

While Canadian stockbrokers 
have welcomed the planned 
merger, some London brokers 
have raised doubts about the 
wisdom of proposing to run 
three such different companies 
simultaneously from Vancouver 
and Toronto. 

Placer, which will contribute 
almost half of tbe new entity’s 
gold output, is an aggressive 
group with an international 
perspective. 

It controls Kidston, the 
biggest gold mine in Australia 
and is currently developing 
Porgera in Papua New Guinea, 
the largest unmined deposit in 
the world. 

Placer has a strong balance', 
sheet, including cash reserves 
of CS213m (US$1 59ml at the 
end of last year. Working 
capital more than trebled in 
1986 to CS248m. 

Campbell Red Lake's main 
mine, the Red Lake mine in 
north-west Ontario, is the lowest 
cost gold producer in Canada, 
with total 1986 operating costs 
of USS114 per ounce. At the 
beginning of last year, Camp- 
bell acauired a 57 per cent 
interest in Klena Gold Mines of 
Quebec, one of the most modern 
gold operations in North 
America. 

Campbell is 50.2 per cent 
owned by Toronto-based Dome 


Mines, which has a number of 
millstones around its neck and 
is still trying to shake off a 
reputation as a dull, accident- 
prone company. 

Dome's biggest liability is its 
relationship with the crippled 
oil and gas producer Dome 
Petroleum, which is currently 
the subject of a takeover bid 
by Amoco of Chicago. The two 
Domes are each other's biggest 
shareholders. In addition. Dome 
Mines has guaranteed CS225m 
of Its sister company's debt, an 
obligation to be assumed by the 
new merged entity. 

Among Dome Mines’ other 
investments is a 24 per cent 
interest in Falconbridge, the 
financially strapped nickel, 
copper and zinc producer. 


WORLD'S LARGEST MINING 
AND METALS GROUPS 
(by market capitalisation) 


WHIP (Australia) 

U5Sbn 

9.1 

Anglo American (S- Africa) 

53 

Rio Tinto-Zinc (UK) 

S3 

Placer/Oonte/Campbell 

(Canada) 

43 

Dt Been (S. Africa) 

43 

Alcan (Canada) 

4.6 

CRA (Australia) 

4.4 

Alcoa (US) 

4-2 

Cons GoM Reids (UK) 

3 A 


Beyond pointing to economies 
of scale in developing new pro- 
jects and to the greater appeal 
to investors of a diversified 
mining group, the three com- 
panies are reluctant to spell 
out tbe benefits of the merger 
until a prospectus is pnblisbed, 
probably within tbe next few 
weeks. 

Canadian analysts are almost 
universally enthusiastic about 
the merger. Mr Tom Komlos of 
Gardener Watson in Toronto 
estimates that the new company, 
with some 220 m shares in issue, 
will be able to raise as much as 
C$600xn with a dilution of 10 
per cent of its share capital. 

However, in London Mr David 
Morgan, of broker L, Messel, 
Bays that size is not necessarily 
an advantage in developing 
mines. The merger would take 
the shine of Placer shares be- 
cause the combined group 


would be unlikely to grow as 
fast as Placer had done alone. 
“ I find it bard to get excited 
about it ” 

Placer appears to have 
entered the venture partly to 
secure its future against poten- 
tial take-over bids. Since 
Noranda, the Toronto-based 
group, sold its 31 per cent con- 
trolling interest in a public 
offering in August 1935, Placer 
has been considering a tempting 
target Its ambitious projects, 
especially Porgera. could 
easily run into difficulties — ex- 
posing it to predators. 

Mr Douglas Scharf, Dome 
Mines chief financial officer, 
says that the merger is 
"friendly arrangement" The 
friendship may be tested, how- 
ever, by the unusual way in 
which the new (as yet un- 
named) company will be toil 

Two main offices will be main- 
tained. one in Toronto to over- 
see Canadian operations, and 
the other in Vancouver, for the 
Pacific Rim interests presently 
held by Placer. No decision has 
yet been taken on which office 
will run Placer’s mining and 
oil properties in British 
Columbia. 

Mr John Walton, Placer’ 
president will remain in Van- 
couver as chief executive 
officer of the merged entity. 
Dome's chief executive, Mr 
Fraser Fell, will become chair- 
man, based In Toronto. Mr 
Walton plans to spend a sub- 
stantial part of his time in 
Toronto. 

On the other hand, the in- 
fusion of Placer management 
may help make the new entity 
more than the sum of its parts 
According to one Toronto 
analyst “ Placer will be able 
to utilise the underlying asset 
base better than the Dome 
management” 

Such a powerful alliance will 
inevitably make the hoards of 
other mining companies more 
watchfuL The industry is see- 
ing a growing number of take- 
overs and acquisitions both in 
base metals and in gold. The 
Place r-Dom e-Campbell plan is 
by far the largest of its kind. 
But other executives in the US L 
Canada, and Australia have 
similar ideas, 


WEEKLY PRICE CHANGES 


Let«at 
prteea 
per tonne 
uni*** 


jCh* ngei 

on 

WMh 




US offer for Cadillac Fairview 


BY ROBERT GlfiBENS IN MONTREAL 


JMB REALTY, a fast-growing 
US property development 
group, has emerged as the 
highest bidder for Cadillac 
Fairview, the Canadian property 
group put on the block last 
August by the Edgar and 
Charles Bronfman interests 
which control the Seagram 
Company. 

It is understood that JMB is 
offering C$35 a share for 
Cadillac, which is 51 per cent 
controlled by the Bronfmans, 
mainly through their Cemp 
Investments of Montreal. This 
would make a total of C$2.7bn 
(US$2.06bn). 

Cadillac, with assets of around 
C$4bn, is a major office, com- 
mercial and industrial real 
estate company in North 
America and is a major land- 


holder in Atlanta and Dallas. 

JMB would offer cash and 
preferred stock for Cadillac 
common shares and minority 
public holders would be offered 
a full cash option. 

JMB is controlled by Mr Judd 
Malkin,, chairman, and Mr Neil 
Bluhm, president, and recently 
bought nearly C$2bn of pro- 
perty in the US from Aetna 
Life and Casualty, and Alcoa. 
Their Cadillac bid topped one 
from Gerald D. Hines, the 
seventh largest US developer. 

However 23 per cent of 
Cadillac is held by Olympia & 
York Developments, the main 
holding company of the Reich- 
mann brothers of Toronto. The 
Reichmanns have been long 
rumoured potential bidders for 
the Bronfman interest in 


Cadillac. No immediate com- 
ment was available from 
Cadillac or the Reichmanns. 

Cemp was formed more than 
25 years ago by the late Samuel 
Bronfman for his four children. 
It was designed to cement 
future family control of 
Seagram, the world’s largest 
distiller. Cemp also invested 
later in many other companies 
including Cadillac. 

However the second and third 
generation Bronfmans want to 
be free to invest their money 
according to their own wishes 
and Cemp is to be liquidated by 
the year-end. But in the pro- 
cess Edgar and Charles Bronf- 
man and certain members of 
the Bronfman family will retain 
40 per cent control of Seagram. 


Drexel rebuffs inquiry talk 


BY JAMES BUCHAN IN NEW YORK 


Drexel Burnham Lambert, the 
aggressive Wall Street invest- 
ment banking group at the 
centre of the US Government’s 
investigation into insider 
trading, says that the inquiry 
will have no “ material adverse 
effect " on its financial 
condition. 

In its review for 1986 pub- 
lished yesterday, the bank 
reported on a dramatically 
successful year and defiantly 
rebuffed speculation arising 
from investigations by the US 
Attorney and the Securities and 
Exchange Commission. 


“ It Is the opinion of manage- 
ment, after consulting with out- 
side counsel, that the ultimate 
liability, if any, that may result 
from these investigations and 
any related civil litigation will 
not have a material adverse 
effect on the group's consoli- 
dated financial condition," 
Drexel said. 

The bank, which pioneered 
and still dominates the market 
for corporate debt securities 
known as “ junk bonds,” is 
under investigation for its rela- 
tionship with Mr Ivan Boesky, 
the disgraced arbitrageur who 


has pleaded guilty to insider 
trading. 

Drexel, which said it is 
co-operating fully with the 
inquiry, said: “ Based on exten- 
sive ongoing investigation, we 
have no indication that any 
individual currently employed 
by the firm has done anything 
to violate securities laws.” 

The bank, which Is privately 
held, revealed that its net 
worth jumped by 75 per cent 
in the course of 1986 to stand at 
S1.27tm. This suggests that the 
bank retained 9545.5m in 
profits, 


CSR lifts Pioneer Sugar bid 


BY CHRIS SHERWELL IN SYDNEY 


CSR, tbe Australian sugar, 
building products and resources 
group, yesterday sweetened its 
recent bid far Pioneer Sugar 
Mills, raising its cash offer and 
introducing a paper alternative. 

The cash offer was Increased 
from A92.20 to A$2.50 a share, 
valuing Pioneer at around 
A$250m (US$l78m). The alter- 
native is one CSR ordinary 
share plus AS1.J20 cash for 
every two Pioneer shares. 

CSR, Australia’s tenth largest 
company and the country's 


leading sugar group, already 
has a 30 per cent shareholding 

in Pioneer. 

Announcing the improvement, 
it said the offer was ,a extremely 
generous,” representing a pre- 
mium of 39 per cent over the 
market price of A3L80 preval - 
ing before the first offer on 
March 31. Pioneer closed yester- 
day at AS2.40. 

CSR's decision parallels a 
similar move in its separate 
takeover bid for Monier, the 
building products manufacturer. 


Both takeovers follow CSR's sale 
of its Delhi Petroleum interests 
to Exxon of the US. 

Yesterday's announcement 
also said Pioneer shareholders 
who accepted the cash offer 
would be entitled to apply 
separately at their option for 
CSR 10-year 8 per cent convert- 
ible notes of A94 each. 

Pioneer owns and operates 
three mill* in Queensland. It 
also has a steel reinforcing 
division, making it doubly 
attractive to CSR. 


Gold and coal 
revenues slide 
at Rand Mines 

By Jim Jones In Johannesburg 

RAND MINES, the mining arm 
of the Barlow Rand group, 
slipped to lower sales and pro- 
fits In the six months ended 
March 31 as gold and coal 
revenues tumbled. 

Turnover fell to R890m 
($19 6m) from R395m in the 
corresponding period of 1986 
the interim operating profit be- 
fore tax. exploration charges 
and dividend income dropped 
to R141.3m from K182-8m and 
the interim pre-tax profit was 
R133m against R156.2m. 

The directors blame lower 
dollar coal export prices and 
die strengthening of the rand 
for the turnover and operating 
profit drops. Many South Afri- 
can coal exporters increased 
tonnages late last year and 
early this year to beat sanctions 
deadlines and rail tariff in- 
creases. 

As a result export tonnages 
are expected to fall further this 
year while export prices will 
remain under pressure. 

Mr Democles Watt, chairman, 
warns that coal revenues are 
likely to fall further in the 
second half of this financial 
year 

The first half’s earnings 
dropped to 601 cents a share 
from 624 cents and the interim 
dividend has been maintained 
at 105 cents. 

Earnings totalled 1,197 cents 
in the last financial year when 
the total dividend was 425 
cents. 

SBC unit buys 
Savory Milln 

SWISS Bank Corporation said 
its Swiss Bank Corporation 
International unit has acquired 
Savory Milln, the London stock- 
broking firm. No details were 

disclosed, reports Reuter from 
Basle. 

SBC said late last year it was 
negotiating with Royal Trust, 
the Canadian financial services 
group, to buy Savory Milln. 
which also operates branches in 
New York and Singapore. 

Sweden’s rating 

Denmark’s AA-1 credit rating 
is being reviewed by Moody's 
Investors Service, not Sweden’s 
as was incorrectly reported in 
yesterday’s Financial Times. 


Veba in DM 400m chemicals expansion 


BY DAVID MARSH IN DUSSELDORF 


VEBA, the West German 
energy and chemicals con- 
glomerate, has agreed to take 
over the chemicals and plastics 
activities of Feldmuehle Nobel, 
the manufacturing group which 
was formerly part of the Flick 
industrial empire. The price is 
between DM 400m (US$22 6m) 
and DM 450m. 

The transaction, which will 
significantly boost Veba's 
chemicals activities, especially 
in the US, still has to be 
approved by the Federal Cartel 
Office. 

If it goes through, it would 
represent one of the most eye- 
catching mergers between Ger- 


man companies of recent years. 
It would add DM 2.4bn in turn- 
over and 9,000 workers to 
Veba's chemicals subsidiary 
Huels, which presently has 
sales of DM 5.5bn and employs 
16,700. 

Mr Rudolf von Bennigsen- 
Foerder, the Veba chairman, 
was reasonably optimistic yes- 
terday that tbe deal would be 
permitted as, he said, it would 
not add to Huels' market share 
in chemical sectors. 

Veba, which was fully priva- 
tised In March after the Bonn 
Government sold its remaining 
25.55 per cent stake, had been 
promised a "fair and speedy 


decision ” from the Cartel 
Office Mr von Bennigsen said 

The deal will involve Feld- 
muehle selling to Veba all Its 
shares in its Dynamit Nobel 
subsidiary, which presently 
groups chemicals, explosives 
and mouldings. These latter 
two activities will subsequently 
be transferred back to Feld- 
muehle and will continue to 
be run under tbe unchanged 
Pyna.rn.it Nobel name, leaving 
Huels with the chemicals and 
plastics sectors. 

Mr von Bennigsen said Huels 
Could finance the transaction 
out of liquid reserves and 


would not need to raise capital. 
Including the liabilities of tbe 
Dynamlt Nobel sectors being 
taken over, the total operation 
would involve financing of 
mom than DM lbn, he said. 

Two-thirds of the operations 
being acquired are in the basic 
chemicals sector. But the deal 
will give Huels a stronger 
foothold In the US with pro- 
duction acquired there worth 
9100m annually. 

Huels is particularly interes- 
ted in boosting its “ high 
technology ” chemicals activi- 
ties through acquiring Nobel’s 
silicon manufacturing plant in 
North Carolina 


METALS 

Aluminium ——•■i ; 

Free MerKet cJ.f— .JS24TO^SO | + HO 

Antimony — ^ 

Fr** Market 09.6X.— 

CopparCMh Orad* A— 

3 m o n th* Grad* A, , 

Sold oor ox. 

Lead Caari ■ 

3 month*-. — — 

Mtokei 


W 15 16/ 1330 


sMOo/am t+ao 

*907.5 [+38 

*868.76 1+99 
. 6405.85 .+1 
~4 *399 i+13 , 

£360.78 |+8235l 


Free market 1 *^54p ,+26 

Palladium.— — »— Si ?®- 60 I — 

Piatinhim peroe—.-w— — — — Ml 1.00 (+3 


Yaar 

ago 


1988/87 


SMMinf 


niwinn 


"SSWT! S3OTSS5T 

£948.78 1059.2 6 (£8*9.3 

8348.935473 5597.8 

£240.36 Le*oo teaaa.B 

£848.38X880.78 U34UBB 

leo/aosa i96n8M mrinci 


S109.8S 1161.00 
6491.78 3873.78 


Outckaflver (76 IBs) 3270/880 + 28 | 3280/830,3860/275] 

Silver p*r ox. ....... l+HA J SSe.BSp [883.60 p 


3 month* par 
Ttft* 


--f 497.950 +11.4 


Praa market — 

Wolfram ( 22 . 0 * lb}-- — 

Zinc caati..-.-..— 

8 monthly. — — — •» 

Producer*. — ■ 


. *4.120/160;— IB 
S46JB3 —4.01 
*80/55 l — 

£823.5 +47381 £481 

£820.28 +49.78} £481.8 
3790l83Oi — 


ORA) NS 

Barley Futures S*pt 


Malta French— 


*98.80 


—Q3B 


WHEAT Futures Jutyv- 
SPfCES 

Cloves — — — - 

Pepper whi t* - 

black — 


OILS 

Co conu t (Philippines}— 

Palm Malayan— 

SEEDS 

Copra (Philippines) 

Soyabeans !U3.1. 


*248.00 
J £111.50 : — 2.60 

i | 

J 63,498 + 28 
18,260 [-80 
-j 64,828 1+88 

.4 S417.Su j — 

4 6337.8V j+18 


1+20 

1+1 


OTHER COMMODITIES 
Cocoa Futures July. 


Coffee Future* Juty 

Cotton Outlook a index 

Gaa Oil FuL June — 

Jot a UA BWO grade 

Rubber kilo 

Steel No. 31~ 


I HVUu 

J »M 6 

*1286.5 Ls* 
*1307,8 —20 


+6 

t~13 


346, SOp 


*3830180, 
*03.07 «| 

348/88 


eeejop 


>9828 

1*343.80 

3181/12 

!317.70p 

326.60 


686/63 

£4539.8 

1*821.78 

6980 


L 18.80 


S7O0/73Oj 

*98 JSO Lei 
£143.00 1*184.00 

*11930 |*121LBO 

'64,860 
68,400 
114,800 

8470 


*300 

8X293 


f aaar8asoU3>MM8o 
*89.741*41 .44 


3321*2 1 

£*19.28 1 
>660/670 


E B .86 
50.00 
[£98.30 


83,200 

84.600 

83.600 

mm 

|197 

8140 

6133.8 


Sugar /Kiwi, 

Tea (quality) kilo.. 


£1,804.8 £1,364,8 
£3,007.5 (£1,944 ■ 


*184.25 

8340 

eo.sp 
*610 
ai78u 
140p 


[-6-5 


■.low modi kiio ! 64o |+2 

Woo/tbp* 64« Super..-—— — « 465p kilo!— 8 


1 71.90c 

16 8932.78 

SMSES 

8222,6 

aosp 

136p 

hue 485p kUo 


86.380 

*00.76 

aaia 

bbSo 

8118 

140p 

62p 

S87p Mia 


t Unquoted. 


ffl) Madagascar. (v) July. (x) April- May. fu) Mey-Juno. 
(w) June- Aug. 


LONDON 

MARKETS 

ALUMINIUM 



t Unofftalai 
taloae iounj 

° r IlflghrLow 


: £ per tonne { 


IB46.6-7JS ! 

+ 91.5 1848 

S month a’, 83*-* r 

+ 1536 .845.11839 


OKoal ekBai.-tg(am): Cash 845.5-6 
(822-2.5). til rat months 843-4 (819-55) 
astrlt ment 8*6 (822.5). Final Kerb 
dose: 844-5. Turnover: 38.275 tonnes 


COPPER 


jUnoffic*! +or 
Grade A ) close — High /Low 
* per tonne 


Cash 
3 months 


907.8 i+15 : 906/903 
8B2.5-3.+1(L3S68S.0f878 


Official doling (am): Cash 906.5-6.5 
(886.5-7), three months 278-9 (868-9) 
esttlament 906.5 (807). Final Kerb 
dose: 882-3. 


Standard 
Cash 
3 months 


860-70 

884-6 


,+1.5 


Official closing (am): Cash 863-5 
(D62-3). three month* 858-60 (8S2-3). 
settlement 868 (863). US Producer 
pness 69-73 cents * pound. Total 
Turnover: 43.960 tonnes. 


LEAD 


Caah 

3 


Unofficial + or 
close (p-mj — 
£ per tonne 


898-400 1—8.5 
montha‘360.8-1 |+B 


High/ Low 


(403/402 

1383/558 


Official closing (am): Ceah 401-2 
(409.5-10). three month* 359-60 (356.6- 
6.75), settlement 402 (410). Final Kerb 
cloaa: 360-1. Turnover: 11,925 tonnes. 
US Spec 24-33 cent* a pound. 


NICKEL 


Cash 
3 months 


Unofficial + or 
clou ip.mJ — * 
* per to firm 


Hlglu Low 


3770-80 | — 60 
{2738-40 I -B73 


(2780/2705 


Official . closing (am): Cash 2JKS-16 
(2.726-35), three months 2,755-70 
(2.690-700). satzi ament 2.815 (2.736). 
Final Kerb close 2,700-10. Turnover: 
2.538 tonnes. 


ZINC 


High 

grada 


Unofficial +or 
Mom tp.m.1 — 

£ par tonna 


Cash |BH-» I fSSABI — 
a month* 1020*0.8 1 +21 |822/488 


523-4 1 +28JS) — 


High/Low 


Official cloalng (am): Cash 5135-4,6 
(491.6-2). three months 612-2.5 (488.5- 
9.5). aettiement S14.5 (492). Final Kerb 
close: 522-2.5. Turnover. 20300 tonnes. 
US Prima Wax mm: 41-43.60 cent* per 
pound. 

TIN 

KUALA LUMPUR TIN MARKET— Close; 
18.68 (16.67) ringgit per kg. Up 0.01. 

GOLD 

Gold fan S3* an dunce from Fri- 
day'* dose in the London bullion 
market yesterday to finish at *458- 
4564. The metal opened at S460V- 
4574, which proved to be the day'e 
high and touched a low of S462V 
463V Trading was subdued ahead of 
the weekend end a firmer dollar also 
Inhibited moat dsaires to open Ireeh 
positions. 


GOLD BULLION (fine ounce) May 8 


Close— *406456 ij (£371 li -8 78 1*) 
Opening*. 84B6V4S74 (£371-27 Us) 
WPlVB fix- 8*66.70 (*371.361) 

*Wn fix 8488.00 (£270.771) 


GOLD AND PLATINUM COINS 


Am Eagle. 8*68-473 
Mapleleaf S46D472 
Kr'o’r'nd™ 8489-462 
is Krug— *240-241 

V Krug 8121-122 

ArweLT..- 546*469 
WO Angel 840-80 1* 
Haw Sov.. 8107-108 
OM Sov — 81071S-109 
* SO Eagle *800-650 
NobleP&t 0630-640 


(£2 TOlg - 28214 

(22BO-2SZ94) 

(£274-2703*: 

(£143 1* -143 S*) 

(£72U-72V) 

(£27811.260) 

(£2714-301*) 

(£635,-6*1*) 

(£6414-66) 

(£298 1« -3281*1 

(£376-382) 


SILVER 

Silver was fixed 6 2p an ounce 
igher for apot deHvsry In the 
London bullion market yesterday at 
407.80. US cent equivalence of tha 
fixing levels were: Spot 8190. ud 9.8c; 
three-month 833.26c. up 9.8er alx- 
month 847.06c. up 0.48c: and 12- 

mondt 876.6c. up 8-3c. The man) 
opened at afl gj aea So ( 820 - 82 Bc) and 
closed at 494V*97>ip (828-B33c). 


SILVER 

per 

troy ox 


Spot 

” months 
months 
is months 


Bullion 

Fixing 

Price 


i+ o, i 


497,0&p 

497.9&P 

607.000 

084.7Op| 


+ej» 

+6 JO 
•r/Ltt 


LMX. 

p.m. 

UnofflcT 


hi- or 


402,6 p 
B02.6p 


[- 8.8 

- 6.8 


Three months final ksrti 600-Sp. 
LME— Turnover: Nil (1) lota of 
iq.ooo ounces. 


INDICES 

REUTERS 


TSay7 | 

| May 8 i Wth ago 

[Year ago 

1579.7 | 
(BasaT 

1B7S3 1 1546.9 | 1779.8 
Saptamber 18~ 1831 -100)' 


DOW JONES 


Sow - 

May I May 1 

Mtn 

| Veer 

Jones 

7 j 8 j 

890 

I ago 


198317197.81 

__ 

198.70 

196.6819833 

— 

il84,7S 


7B*sefbeoerai>«r'2frT9ai -100)“ 


COFFEE 

In extremely thin conditions and a 
£16 range robtista'a saw their quietoat 
day tar a long rime. Physical Interest 
was non-existent and most houses 
preferred to abstain, reports Drexel 
Burnham Lambent. 


COFFEE 


[Yesterday 

etoee 


4- orj Business 
Dene 



1+27.61 
+ 20.0 
+ 11.6 
+7.0 
+ 12.5 
*- 12.0 
+8.0 


1285-1270 
1315-1300 
1338-1822 
1381-1348 
1378-1360 
1383 


Sales: 1,311 (4,772) lots of S 

tonnes. 

ICO indicator, prices . (US cents' • 
pound) tar May 7: Comp., dally 1979 
107.67 (108.27); 15-day avenge 108.98 
(lOBJil). - - ■ \ 

COCOA 


(Yeeterdayaj 
alone 


j£ per tonne 


w«y — 

July. 


Sept, 

Daa-...._ 
Merahm .^4 
May- — 
July 


1257-1260 

1286-1287 

1302-1303 

1329-1330 

1364-1386 

1373-1376 

1393-1396 


+ or 


B8 

+2J0 
+2.0 
+ 1.6 
+2JS 


[Bulimia 

done 


1 JM-HS 6 

1U8-1235 

1504-1237 

1550-1525 

1U4-154S 

1576-1570 

1590 


Sales: 1.729 (2A46) lots of 10 
tonnes. 

ICCO In d fcs tor prices (SDRs per 
tonne). Dally price for May & 1.B0TJ3 
(1,003.71); 10-day average lor May 
11: 1,606.30 (1,000.61). 

Futures oloaed virtually unchanged 
having traded within ■ tight range 
throughout a dull aesalon, reports 
Glil and Duffua. 

FREIGHT FUTURES 

The market continued its rise with 
short-covering and trade buying fea- 
turing strongly. Higher levels trig- 
gered atsp-loes buying lifting the 
mark at to again trade limit-up. Phyal- 
cal developments included a report 
of Gulf/Japan fixture et 618.80, . re- 
ports Ctakson Wolff. 


IN LACKLUSTRE tndh**; 
the sfectoo* ifletab *tniw»e« 

S nSJTuS headway Wlaw. 

Ing eorly losses, reports 
Drexel Burnham X*nri»eTt. 
Short-covering in the goM. 
Bilrer mad pUtimun future* 
steadied tii« tnATketa tome* 
from evb lows, hot trade 
selling et the highs coupled 
with local long-liqoitUtloa 
and pre-weekend boo*- 
set raring put prices oo the 
defensive ta I*te 
the mmrkets clorod with pare* 

losses. Copper 

reaudned firm on coeninlsrion 
house bWtag, but voj™ 
was light. Crude oil future* 
also Sided indifferently ta ■ 
session dominated by th® 
locads. Short-covering polled 
prices ®w«y fw*mh»dewl^ 
port at the lows. Coffco 
t££k res rallied on short- 
covering. Cocoa iwjf? ta • 
narrow rouge dosln ^ M “ 
holanee, essier. Sug*r 
featured mainly local *ctl- 
vity With commlastan hoBgta 
light sellers Mid short-eortr- 
rallying the market Ute 
in the day- Cotton futures 
continued firm ** the market 

followed through “f 

technical breakout. Orange 
Juice futures rallied on mixed 
short-covering. In the grains 
and soyabean future* con- 
tinued short-covering heK 
prices firm- In the meats 

Seattle futures rallied refirot- 

Mng tight supplies and good 

detail demand. The nogs 
rallied in sympathy, but pork 
bellies fell reflecting weak 
cash prices. 

NEW YORK 

ALUMINIUM 40.000 >b, owUe/tb 


•£« kji ««» £2 

S? S-S R5 Si'S RS 

tS J 13 g* «« 

SS 5.S SS S3 

nw 82-w 

okanm jmta gw>- 


My 

Juty 

«wi 

MW 

Jao 


May 


CI«M 

1*4.10 

120 .B 0 

128.10 

128-93 

126.78 

128.78 
1 St-78 


183- 96 
190.30 
W 8 > 
128.00 
126.90 
128J0 
128.M 


T34JM) 7*240 
190*0 

129-DO Hi. 18 
129,90 Wtt 

126-00 1*8*0 


flath*ub*~ 8Q ooy 


UWtrev « 


Jun# 

Juty 

Out 

Jan 

April 

Mr 

BltVX* 

811.9 

»«.1 

820.4 
8313 
4393 

648.4 

917.1 

0351 

OM 
Ml 
are. a 
MJ 

017.9 
Ml 

830.9 
090.0 

•659 

8170 

6383 

LOW troy to. Wl0l/Vty as 



Preu 


tftw 


aoa. a 

•N.9 

tm. a 

814.0 


833.6 

•30.5 

BO 

•83 0 


•37 >6 

008. S 

■61. 9 

•WO 


MU 

148.1 

000.0 

soao 


•84.3 

682-3 

8773 

•47.0 


•68.7 

047,7 

row. 

— • 

UimX 

••0.7 

878-7 

801 8 

aiso 


mt 

0*0.7 

•98,5 

•80 0 

July 

f«C3 

9089 

*T5J> 

918.0 


9UQM WlOMO “ H ** *•- 

BX»W» 

CMM Frw IM Loi 
J 0 )y Id 8.22 f-90 « K 

Sapt 7.TI 7.13 3.28 7,8* 

Sot 7J* 7.» 7.»i 7ra 

JM 7.49 T.46 — - — 

MMb 7.a 7-84 7.73 7.69 

May 7.82 7.7» 7J52 7.71 

JlUY 7,98 7.BB 7.94 JM 

Oct 812 80 S 8«1 8-n 


CHICAGO 


June 

Aug 

OM 

Omo 

Fab 


Ctoee 

Pr*y 

1 WioK 

Low 


89.26 

08.12 

88.30 

08 -W 


03.50 

03 00 

83. SB 

82.85 


•2.Z2 

419 

sr.w - 

81.05 


40.97 

83 30 

03.00 

52.3ft 


C2B6 

KLM 

40.60 

82.30 

( 

44.17 

63.87 

84.28 

53.IO 

84.06 

84.00 

M.B 

64 00 



LI VI HOGS 30,000 Urn. 


May 

Jurw 

July 

Kapt 

Dm 

Jan 

Mardi 

May 


Close 
66- Ml 
67.75 
06.95 
84.90 
84.90 

84.90 

64.90 

84.90 


67.25 

80.46 

84.00 

64.00 

64.00 

84.00 
84.00 


Hick 

08.00 


Low 

08.00 


87.00 06.90 

84,90 84,90 

HJO *4 JSO 


Juoa 

July 

Aug 

Oct 

Dm 

Fab 

April 

June 

July 


CIbm 

84.83 

81.48 

47.85 

43.47 

43.17 

41.26 

383 

41.30 

40.10 


Pmh 

04.47 

51.28 

47.73 

42.35 

42.20 

413 

39.06 

41.26 

40.40 


CMM/M 

fiSK 

643 

613 

48.26 


"is; 

64.90 
61 00 
473 
42.70 43.18 

42.68 42.10 


41.78 

39.85 

41.60 

40.42 


41.10 

38.10 
40.68 
39.00 


, r *. r z MAoi 


Mtn. 


May 

July 

Sam 

DM 

March 

May 

July 


COFFEE “C" 


10 tomes. 9/tonnee 
Oaaa Prav Kfoh 

Low 

May 

Ctaaa 

1*0 4 

P raw 
1*3.4 

Htak 

1*7.0 

~ US 
182.8 



1883 

WO 

-M63 

Juty 

192.1 

160.2 

153,9 

1890 

-‘V 


1608 

amt 

hr 

tapt 

Iftl 

1*2 J) 

1K2 

191.0 


2028 

2034 

2010 

Dec 

199 Jt 

1*8.2 

199.2 

194.0 



2088 

2008 

20*0 

Marob 

m. * 

2003 

200 9 

2010 




2074 


■My 

308-2 

304.2 

208.4 

2036 


2129 

2110 



July . 

208.0 

201.0 

209.8 

200.0 


2168 

2148 

— 

— 

PORK 

BELLIES 

38.000 

ba. rants /Tbe 



May T10JS5 
July TW.40 
Sapt 1M-97 
Dm 1183 
March 1303 
May iaO.76 
121.50 


Prirv RES Low 
116.00 790.60 116.00 
116.51 1173 118-38 
116,75 1173 VM3 
117.96 1WJ5 nt-ifi 
T19J20 120-2S 120.00 
720.48 — — 

121-25 731 3 1213 


Sapt 

122.13 

IMS! 

— 

— 

COPPER 

25.000 

th. cente/lb 



Ctaaa 

Prew 

Htah 

Low 

May 

86.46 

•0.20 

•6J6 

00.00 

June 

6W.18 

88.90 

w— e 

— 

July 

05.7B 

•6.66 

06.30 

06.35 

sept 

flEJS 

B5J0 

■626 

■4.95 

Deo 

58.46 

06-40 

•6.16 

06.10 

Jan 

66.06 

66.66 


. SM 

Mart* 

06.76 

86.78 

00-40 

•*.70 

May 

88-10 

.86.10 

00 JIB 

80 JO 

July 

M.4S 

60.50 

MM 

00 JO 

Sapt 

06.80 

BBJO 

— 

— 


May 

July 

Aug 

tab 

March 

May 

Ctaaa 

74.02 

71.12 

00.02 

68.82 

50-42 

58.40 

Prev 

78,78 

71.87 

87.20 

68.80 

68.62 

WJO 

HHrtt 

78J0 

72.00 

07.60 

89.68 

68.80 

80.40 

73.76 

70.05 

86.60 

18.40 

68.42 
59 JO 

WHEAT &000 bu min, cantp/BOfb 
buabel 


Ctaaa 

Prav 

High 

Low 

May 

306-0 

304.0 

308.0 

300.0 

July 

*90 3 

2904 

*96.0 

288.0 

Sept 

290.0 

292.0 

297.0 

291.4 

Deo 

3fttJ> 

2B9D 

SOSA 

297.4 

ai ■ ft- 

HUhCVT 

301.4 

290.0 

301.4 

3*8.0 

May 

296.0 

2*8.0 

297.9 

290.0 


SOYABEANS 6,000 b« min. oaMtaysOto 
btrahaj 


COTTON 60.000 lb, canta/lb 


CtoM Prmt Htah Vow 
July 673 M3 683 06.10 

Oct 673 663 07.05 46.10 

Dm . M3. 3.63 873 66J0 

IMrdb 673, 33 *73 04.4ft 

May 673 M3 073 67. W 

July 08.06 073 — — 

Oct 00.06 67.06 — — 



Ctaea 

Prav 

High 

Law 

May 

EG5A 

552.2 

HU 

648.0 

July 

658.4 

6M. 2 

080.0 

081.4 

Aug 

662.0 

MJt 

882.0 

064.0 

«ept 

600.6 

lfiO.2 

887.0 

8*8.4 

No* 

668.0 

562.0 

6SB.0 

548.0 

Jen 

606.2 

6G8.8 

607.4 

657.0 

March 

573.4 

tmJt 

574.0 

864.4 

-May 

578.4 

571.0 

579.0 


July 

880.0 

871.0 

BOOkO 

SBO.O 


SOYABEAN MEAL 13 tana. 9/twi 


CRUDE OIL (UOKT) 43.000 U8 
S/barrolla 


gaBOMu 



Cloaa 

Prev 

Hlob 

Law 

June 

19.28 

19.13 

10-27 

19.02 

July 

18JH 

18.82 

18. S3 

18.73 

Aug 

18.78 

18.70 

1831 

18.03 

Sept 

18.08 

W.61 

18.70 

18.57 

Oct 

18 J« 

18.68 

18.68 

W3B 

Nov 

WJB 

18^7 

18.67 

1835 

Dec 

19.80 

18.66 

18.04 

18.60 

Jen 

18.86 

1*34 

1838 

1832 

Feb 

18.60 

183* 

—• 

— 

HOLD 

100 troy 

«. S/troy ox 



Cion 

Prev 

High 

Low 

May 

404A 

457.8 

4663 

454.0 

June 

456.7 

460.8 

466.4 

4543 

Juty 

480^ 

442.4 



August 

402.1 

466.1 

403.8 

460.0 

Oct 

467.7 

470.7 

4093 

400.0 

Deo 

473.4 

476.4 

476.0 

4713 

Fab 

479.4 

482.4 

490.0 

477 J 

April 

40EJ 

4083 

4*6.0 

4053 

Jane 

401 J 

4043 

404.0 

4873 

Oct 

504.0 

507.7 

5063 

506.0 

Dac 

611.4 

614.5 

611.0 

511.0 

tab 

818 3 

6213 





Ctan 

Prev 

Wnh 

Low 

May 

168.0 

104.2 

1063 

162.0 

Juty 

185.1 

1*3.1 


W1.0 

Aug 

66.1 

183.4 

196.5 

1613 

8«Pt 

168.2 

16X3 

1063 

182.0 

Oct 

1663 

104.0 

1603 

182.6 

Doc 

187.3 

106.0 

107.5 

182.7 

Jen 

1683 

100.0 

109.0 

1663 

March 

mo 

108.0 

170.0 

160.0 

May 

1083 

1673 

198.0 

1703 

July 

108.0 

1073 

188.0 

170.0 


Ctaaa pm H/oh Low 
May 183 783 773 76.78 

July 77.14 17.18 173 173 

Aug 17.51 77.35 77.60 17.25 

tap* 1748 17.50 17.0* 17.40 

Oct 77.68 17.86 1X76 7745 

DM . T7.S7 77.88 183 17.83 

Jan 173 173 18.10 173 

Marah 18.29 183 18.36 183 

May 183 18.2B 18.50 18.40 

July 183 18.28 183 183 

.SPOT PRICES: Cfilcaga loosa laid 
14.00 (aama) cants a pound. Handy 
and Harman silver bullion B38.0 (aama) 
eanra a trey ounce. Naw York tin 319- 
22 (320-22) canta a pound. 


I Cloaa I High /Low | Prav. 


Dry Cargo 

July 

* 1049 

1080/1013 

996 

Oct. 

1070 

1070/1040 

1080/1833 


1070 

1070/10881030/1062 

Apr. 

1000/1000 

1040/1080 

1015/1928 

&£ 

900 

980/900 

790 

860 


800 

Jan. 

— 

— * 

990 

April 

1130 


1100 

BFI. 

10663 


10013 


Tumovan 1,121 (758). 

GRAINS 

Old crop plununattad on long 
liquidation rejecting confirmation of 
a further Intervention wheat release, 
with pricaa touohiftS ovar £2 down 
before recovering an narvoira profit- 
taking. Naw crops, having eased in 
early trading, found goad shipper 
and consumer support to dose 
■ready, reports T. G. Roddick. 


Month P 

'eetarday’N PravkHie lauelnese 
otaaa 1 doaa | done 

HSU 

Ulil 

£. par tonne 

141.00} 147.601 14630-146.68 

jsS ssS 91 -*± 9lM 

Sales: 864 (443) Iota of 40 tonnes, 
(after regrading, rebaggi ref Jon — 

SOYABEAN MEAL 


Yeeterd'ya 

cloaa 

+ or 

Bualneaa 

dona 


WHEAT 

r as?rdy*aH* AT 
etaaa T — 


May ~ 

July _ 

Bop... 

Nov.— 

Jan. 

Mar.... 

May... 


119.10 
19 1^0 
101.30 
10S.BO 
1063 
108.70 
111.3 


BARLEY 
lYaat'rdy'aH- or 

OtOM | — 




106.78 

96.M 

101.10 

103.88 

106.90 

107.86 


[-13 
’«6 
ta 

1—0.56 


Busin ass dona — Wheat: May 120.40- 
18.80, July 123.10-13, Sept 1013. 
Nov 103.60-33. Jan 106.2B-0.10. 
March 100. 70-8. BQ, May untradad. 
St las: 282 lota of 100 tonnes. Barley: 
May 10738.50. Sept 98.60, Nov 

101.10. Jan 1*33.50, March and May 
untradad. Salsa: 84 Iota of 100 
tonnea. 

LONDON DRAINS— Wheat: US Hard 
Winter 134 per cane May 943, 
J una/July 88.00. US No 2 Soft Rad 
Winter: June 93.50. July 91.25, 

French 11V-12 par cant: April 143.50. 
English lead, fob: May 123.50-12*3 
buyar/aallar, July 124.60 sailer. Sept 
107.00, Jsn/March 111.0CL AprII/Juna 
115.00 aaflera. MSlaa: US No' 3 
Yellow/French. transhipment East 
Cone March 146.00. Barley: English 
feed, tab: May 1123. Aug 101.75, 
Sept 103.50. OcUDac 1063 sailers. 

HGGA — Locational ax-farm apot 
ortesa. Feed, bukr- E. Mldlanda 
100.90, N. East 111.10. Scodand 

114.10. The UK monetary eo-afflciaiK 
tar the . waste baginning Monday 
May 18 (baead on HGCA cateulatioM 
using tiirna .days’ aadianga' ratal), 
la axpa c tad to remain unohangad. 

POTATOES 

May cams under keen sailing prat- 
aura from tfis opening aa tha market 
specula red upon tha possibility pi 


April 1887 tenders being rs -present ad 
(altar regrading, labagglng) for de- 
livery from Tuesday of next week, 
together . perhaps with Dutch Blntja 
(the Dutoh physical Is around £503). 
New crape continued the trend of 
the weak, firming £53 during day 
on tareoeaza of further dry conditions, 
reports Coley and Harper. 


June — ~ 
Aupu«L_ 
October- 

Dec 

Fob, 

April..* — ! 

June 


£ 

I per tonne] 

116.61 11.7 

iu.a-iiu 

1113-118.6 

1913-125.4 

US.0-1S3.7 

1M3-1H.9 

1».6-1»3 


+0JSU9JI 
+ 116.0-117.4 

+ 1 .8* 1 1BJI-1 17.9 
+ 1.46 — 

+ 1.88 — 

+ 1.701 — 

+ 135) — 


Sales: 88 (316) lore of 20 tonnea. 

SUGAR 

LONDON OAILY PRICE — Raw sugar 
81783 (C104301. down 82.50 (down 
£130) a tonne tar May/June delivery. 
White sugar 81893. do wn 9 2. BO. 


No. 6 
Con- 
tract 

•i 

n 

eloftft 

Buelneae 

don* 


8-Ptif 

•png 

&ZZ 

DM... 

Bier— 
Mew — 

fc; 

Li 

166.4- 1603 
102.2-162.4 
16S3-1B8.4 
1703-176.9 
17I.M7B3 

176.5- 1773 
177.0-1783 

1673- 184.* 

184. 0- 144.8 

166.1- 1663 
1713-184.4 


tonnea. - 

Tare end Lyle delivery price for 
grmnlatad basis sugar wai £20630 
(£2103) e tonne for export. 

I n te rn at io nal Sugar Agrea i n ane— (US 
cents par pound fob and stowed Carib- 
bean porta),* PrXaa for May 7: Dally 
price 6.75 (6.72)1 15-day average 038 
(6.87). 

OIL 

Brant prises wars stable to slightly 
weaker In modarett aotivlty doml na- 
iad by a few tradara. June WTt 
opened 4c down on Nymax and 
traded 1c down at 13 pm EOT. Tha 


jretraleuni products mark at showed 
some undartying firmness In a quiet 
day but gaa oU waikenad slightly 
with futures — Povoleum Argue. 
London. 




180 
or — 


CRUDE oil— FOR (8 par barrel)— May 

Arab Light — 

Arab Heavy. — 

Dubai 7. 

Brent Blend 

W.T.L (lpm oat) ...... 

Foraadoe (NlgeHa) 

Urals (off NWEX 


17JJO-173S , 

18. 70-18.90)— OJ)8 
ULOR-H.IO* 


.195 


PRODUCTS— North West Europe 
Prompt den very off (| p«r tonne) 
Premium gasoline.. 

OaaOII. 

Heavy! _ 

Naphtha. 


Iff Lumiu 

ium flafonnft.ee) BOO-flOK +1 

II ( 166-157 1 

[fuel OH 109-111 +9 

I 168-1681 + 1 


• June 

Petroleum Argus sattmtaa 

GAS OIL FUTURES 


Month . 

Yoatrdy^ 

oloaa 

May— ... 

June.. n 

Julv„ 

Aug- 

8o Dt — 

Oat. 

UBS 

per tonna 

198.00 
16435 

104.00 
154.76 
166.80 
1B0.BQ 


— I Don* 


— 1341513046.00 
+O^1M.S54830 
— 1M.H4LM 
-Q.7bl653fl-M.7B 
-0301156304030 
— 0.W1M.W 


tonnea. 


HEAVY FUEL OIL 


Month 

Yesterday 

aloee 

+■ or 

Bualneaa 

Done 

May— . 

June — 
Juty 

US 8 

per tonne 

10336 

108.00 

+038 

105.003,60 


Tumovan 18 (7) lore of 100 tonnea. 

RUBBER 

amiM'uiiSiir Th * London merkat 
ti'rtwd lower 
taroughout the day and closed un- 
eartaln. reports Lewis and Pui. 
Closing prioee (boyars); Spot 80.50 b 

Ju '*f ^ ,JBd (unu); July 

Si ffi* ■{? l | IBI l 73s* Kuala Lumpur tab 

i&s vmly ^ 30 

678. May 577.680. 

i.hL: S?: 380, '***** 


¥ ' 






Financial Times Saturday May 9 1987 


WORLD STOCK MARKETS 


Prise | +* 

ins I - 


Stocks Cttfcg dam ' 

ItoMtw nM Mi no sqr 
SBL«cT!L-t^54flO 73V -Mi f«(W 

AT&T- _. 5 J 2*200 M 

4 .aCT 300 \ +J, 

IJ5X ■■■ - - 1- _ 4-230.400 32V «Ul Geo. MOOTS 


WALL STREET 

Stocks fall 
but bonds 
move up 

STOCKS BROKE step with the 
surging Bond market on Wall 
Street yesterday when a flurry of 
sell programmes, some related to 
the sale of stocks that have gone 
ex-dividend this week, depressed 
stock prices. A steady dollar and 
strong April employment figures 
failed to encourage investors. 

By 1 pm the Dow Jones tadust* 
rial Average was down 11.83 to 
2322.73, reducing its rise on the 
week to 36.51. while the NYSE All 
Common index, at 3165.23, shed 90 
cents on the day but still held a 
$2.01 gain on the week. Declining 
issues led advances by a seven- 
five margin in a volume of 
134.78m. 

“Some people feel they have 
captured all the dividends they 
want, and now they are dumping 
the baskets of those stocks,” 
trader Bill Bee of Prudential 
Bactae Securities said, noting the 
number of stocks that have gone 
ex-dividend in the past week 
Other traders said there may 
have been some switching of 
hinds to 30-year Treasury Bonds, 
which moved sharply higher 
yesterday in response to what 
traders called good demand from 
the Japanese In Thursday’s Treas- 
ury auction. 

Leading the retreat was the 
Technology group. IBM fell $l*h to 
$163%, Digital Equipment $2% to 
$167%, Unisys $1% to $120%, Hon- 
eywell $1% to $78% and Cray 
Research $1% to $115%. 

Compaq Computer, however, the 
sixth most actively traded Issue, 
rose $2 to $42 after Werthelm and 
Co came out with positive com- 
ments about the persnal computr 
maker, traders said. 

Proctor and Gamble continued 


its ascent, rising $4% to $93%— it 
rose $3% Thursday after it said 
the FDA agreed to review its peti- 
tion for approval of the calorie 
and cholesterol free food addi- 
tive. 

THE AMERICAN SE Market 
Value index put on 0.74 to 333.06. 
making a rise of 7.88 on the week. 
Volume 9.29m shares. 

CANADA 

Stocks strengthened moderately 
in active midsession trading, 
largely driven by improving Oti 
and metal stocks. 

The Toronto Composite index 
gained 18.8 to 3812.50, Metals & 
Minerals 25.3 to 2929.2, Oil & Gas 
85.6 to 4260.5 and Golds 11.9 to 
9283.5. 

Oils continued higher as world 
oil prices improved. 

Cadillac Fairview remained 
baited at $34%. Industry sources 
said Cadillac Fairview would be 
acquired by JMB Realty Corp, of 
Chicago, for$2.70bn, or 535 a 
share. Cadillac plans an official 
statement later in the day. 

TOKYO 

Share prices surged to a second 
straight record close in heavy 
trade. Institutional investors 
snapped up stocks after the yen- 
dollar exchange rate steadied and 
recent market uncertainty abated. 

The Dow Nikkei market index 
finished 381.68 up at a record 
close of 24.58923. after 24,610.96- 
earlier. Thursday’s record close 
was 24,207.55, up 288.99. The pre- 
vious record high was 24256.20, on 
April 23. 

Advances led declines two-to- 
one in turnover of 2bn (LI bn) 
shares. 

A three-day US Treasury bond 
and note auction, ended Thurs- 
day, drained less cash than 
expected from Tokyo market A 
mood of caution that hung over 
the market for the duration of the 
auction evaporated yesterday. 

Investors were also relieved the 
auction's results, which showed 
Japanese as healthy bond buyers 
Thursday, bad a stable effect on 
the yen-dollar exchange rates. 

Thursday's renewed expecta- 
tions Japan will cut its discount 
rate next month continued to 
inspire share purchases 
yesterday. 


HONS KONG 

Late buying pushed share 
prices to near the day’s highs. The 
Hang Seng index rase 19.50 to 
2,805.06 and the Hang Kong index 
added 14J25 at 1.810.85. 

Turnover HXSl.Olbn 

(HK$1.27bn). 

Institutional demand was highly 
selective and focused mainly on 
Blue Chips. 

Brokers said the Cheung Kong 
group attracted interest, with 
Cheung Kong falling HKS7.75 to 
HKS39.50 ex-dividend and ex- 
bonus. 

The property sector shook off 
speculation of an interest rate 
rise, with Wharf and Sun Hong Kai 
Properties each up 10 cents to 
RK$7.95 and .HKS15.30 respec- 
tively. New World rose 20 cents to 
HKS1I.30. 

SINGAPORE 

Mixed after bargain hunting 
alternated with bouts of profit- 
taking in active trading. 

The Straits Times Industrial 
index rose 0.09 to 1.131.43 and 
turnover increased to 45.9 m 
(42.9m) units. 

Brokers said bargain hunting by 
institutions caused several Singa- 
pore stocks and selected Malay- 
sian issues to score sharp gains, 
while losses were mostly small. 

Newly-listed Avimo featured 
with a 52-cents gain to SS4.58 on a 
turnover of 2.63m shares. 

DBS and Metro gained 40 cents 
each to SS13.60 and SSR.15 respec- 
tively, followed by National Iron 
up 30 cents to SS6.10. 

AUSTRALIA 

New Interest in Industrials 
offset profit-taking in the 
Resources sector and pushed 
share markets to another record 
dose. 

The prospect of lower interest 
rates, especially after Thursday's 
rediscount rate cut. and a return 
to more sensible prices drew 
buyers back to Industrials. 

Heavyweight Mines and Golds 
were trimmed back by profit- 
takers. 

The All Ordinaries index pas- 
sed Thursday's record finish by 
3.8 to 1327.1. after 1,830.3. The Ail 
Industrials index rose 9.8 to 
2£39.0, while the All Resources 
index slipped 0.9 to 1 .284.4 and the 


Gold index fell 38.1 to 2.5674. 
Metals and Minerals shed 5.4 to 
1,251.4. 

National turnover 196.6m shares 
worth AS37B.5m, with rises out- 
numbering falls almost four-to- 
three. 

Heavyweight mine WMC was 
hard hit by profit-taking, falling 20 
cents to A 57. 84 and reaching a low 
of AST. 74 — it was heavily traded 
by overseas investors, with 3.4m 
shares changing. 

GERMANY 

Share prices mostly recovered 
after a weak start and closed 
mixed, with support by a further 
rise in the value of the dollar and 

some favourable company news. 

Prices opened lower on news 
pharmaceutical Scbcring had cut 
its growth forecast far 1987 group 
sales to 1 per cent from 5 per cent 
because of the strong mark. Scher* 
ins dropped DM 51 to DM 556. 

The Commerzbank index of 60 
leading shares, calculated at mid- 
session. fell 10.3 to 1.792.8. 

While foreigners remained 

largely sidelined throughout the 
session, domestic investors 

showed some interest for Utili- 
ties, Steel Manufacturers and 
Chemicals. Banks remained out of 
favour, undermined by pessimis- 
tic expectations. 

Deutsche Bank joint manage- 
ment board spokesman Alfred 
Herrhausen comments that Banks 
faced a more difficult year pushed 
Bank share prices down. 

In cars. VW finished unchanged 
at DM 363.50. after DM 328.50. 
following news sales at is Audi 
subsidiary rose in the first 1987 
quarter. 

SWITZERLAND 

Domestic stocks slightly higher 
on increasing turnover, with 
demand concentrating an selec- 
tive Financial and Industrial 
issues. 

Usual profit-taking ahead of the 
weekend was matched by strong 
buying, the firm trend being based 
on the stabilised exchange rates. 

Industrials wore led by the 
bearer share of Alusuissc. which 
surged up Fr55 to 630. while its 
registered also posted a strong 
gain. 

Against the firm trend. Inspecto- 
rate bearer fell Fr210 to 3.410. 



SPAIN 

May8 


Me* for 
PU. I - 


AUSTRALIA (Continued) 

I 12 & i 


Price + nr 
AintS I - 


5; 

PS 

yjrr 

jpE 

523 


W< r )*grij^ 

isSss 


JAPAN (Continued) 

"*»“ I I + ~"’ 



37 b0 I +40 
1W0 1 +10 

+J0 SINGAPORE 
+100 

-30 May 8 

+30 
+30 



NOTES— Price* qndusiwe are as 
quoted on the Individual eicnanges and 
are last traded prices, it Dealings nt* 
Bended. d E* drtgfend.E Ei scrip issue, 
v Ei lights, u EialL ■ Price b Kroner. 
















































































































































































































































I 


12 


CURRENCIES & MONEY 


Financial Times Saturday May 9 1987 

LONDON STOCK EXCHANGE 


r 


FOREIGN EXCHANGES 


Pound up despite rate cut 


STERLING BROKE through the 
DM 3-00 level yesterday despite 
substantial central bank 
intervention and a cut In base 
rates, following a better than 
expected performance by the 
Conservative Party in Thurs- 
day's local elections. 

This was seen by the market 
as paving the way for a June 
election with an announcement 
expected on Monday. Against 
this background sterling was in 
strong demand as overseas 
investors took advantage of a 
sharp rise in equities and Gov- 
ernment paper. 

The Bank of England con- 
ceded a further half point 
reduction in base rates but this 
had only a temporary effect and 
the pound finished towards the 
day’s highs at DM 2L9950 up from 
DM 2.9850 and FFr 10.0050 from 
FFr 8.9850. It was unchanged 
against the yen at Y234.0 but 
rose in terms of the Swiss franc 
to SFr 2.4625 from SFr 2.46. 
Against the dollar it eased to 
$1.6750 from S 1-6795. 

£ IN NEW YORK 


On Bank of EBgUu»3 figures, the 
pound’s exchange rate index rose 
to a high of 73JB before settling 
back ahead of the weekend to 73.6, 
the same as Thursday's dose. 

The dollar finished on a firmer 
note following better than 
expected US employment figures. 
The April figure showed a total of 
<L3 per cent of the working popula- 
tion without a job compared with 
6.6 per cent in March. This was 
much better than expected and 
combined with pre-weekend short 
covering to boost the dollar. Many 
dealers still spoke of the dollar's 
bearish medium term outlook, 
however, and thin tended to high- 
light the current lack of consensus 
on fotnre dollar trends. 

The dol lar rose to DM1.7885 
from DM1.7775 and Y 139.65 com- 
pared with Y139-35 l Elsewhere it 
rose to SFr 1.47 from SFrL46 and 
FFr59725 from FFr5.9450. On 
Bank of England figures, the dol- 
lar’s exchange rate index rose 
from 99.8 to 100.2. 

D-MASK— Trading range 

against the dollar in 1987 is 1.9305 


"to 1.7690. April average 14012. 
Exchange rale index 1474) agatpgt 
14M six months ago. 

There was no intervention by 
the Bundesbank at yesterday's fix- 
ing in Frankfort The dollar was 
fixed at DM 1.7844 compared with 
DM L7738 on Thursday. Dealers 
were unwilling to open positions 
ahead of the weekend and a small 
amount of short covering managed 
to keep it above the day's lows. 
The dollar dosed at DM 1.7905 
from DM 1.779a 

JAPANESE YEN— Trading 

range against the dollar In 1987 is 
153.45 to 138A5. April average 
14286. Exchange rate Index 228J 
against 266.7 six months ago. 

Trading was again rather sub- 
dued in Tokyo. Traders were uncer- 
tain about dollar movements and as 
a consequence the US unit finished 
at Y 139.10 from Y139JE6 in New 
York and Y 1 38.95 in Tokyo on 
Thursday. While underlying senti- 
ment remained bearish, there was 
a brief pause in the markers down' 
ward push on the dollar after an 
acceptable response ta the US 39- 
year Treasury bond auction. 


POUND SPOT— FORWARD AGAINST THE POUND 


Mays 

LOUS 

Mm 

Close 

£5pM 



1 axwtb 

■-HtratLl 


Snxmta __ 

068065 pm 

0-73-0.70 pn 

12 mowfes 

115-1.05 pm 

U3-L23 pm 


Forward premi 
US- dollar. 


and discounts apply to the 


STERLING INDEX 



K9H 


wm 


HTW 




BilfH 


mrrrm 


BtiH 


Hi l p * 


BTtH 




BTiH 


^■CITrvH 


HtTH 




H«TH 




HtTH 


IRLUJI 





May B 

□Ws 

spread 

Cktsa 

One month 

H 

Dm 

momte 

% 

PA. 

US 

16680-16750 

16745-16755 

031-QJSc pm 

201 

0.70-065 pm 

161 

Canada — 

E2ZB4«247S 

22380^2390 

0344124c pm 

165 

0520.40 pm 

082 

rjrthrdamh . 

337-3-38*2 

337-338 

l>«-lc pm 

460 

3-21, pm 

3-41 

BelgfM 

6204-6230 

6220-6230 

130c pm 

135 

29-21 pm 

161 

DeanarV „ 

1L24V1L2912 

1126-U37 

VVi « db 

— L26 

3V4J*dta 

-142 

Ireland 

] )iB5-i igy; 

U200-U210 

(L094L20 p dta 

-135 

023-049 As 

-129 

W. Germany . 

2.99-3.00 

2.99-3X10 


326 

UHzpm 

134 

Portugal 

230X17-23ZJ5 

230.40-231.40 

73-153cffis 

-537 

327-418 « 

-645 

Sp— 

209-77-211.05 

210.75-211. 05 

142-USc «*s 

-865 

366589 dta 

—925 

hal| 

215512-2181 L 

2162-2163 

1-4 beds 

-139 

4-9 dta 

-120 

Norway 

JU'H.-im 1 * 

1L16V-1L17I. 

4V-5>z ore dh 

530 

16-161, dta 

-566 

France - 

9.991a. 10.03X, 

1000-10.01 

IV 1 ! c pm 

097 

1*242 im 

0.40 

wWtOHl ■■■■■ 

1O44V10-4912 

10.45-10.46 

Par-1, ore A 

-043 

lV2*t «* 

-069 

Japan 

233^-234(2 

233> t-2341j 

1*8-1 7 P*0 

5.45 

3*t**P<n 

5J3 

Anuria 

2U0-2L08 

2L0S-ZUB 

9V8I, 9ra pm 

4.98 

24-ZUzpm 

432 


2.45V2.461 < 

2.45L-2464i 

ltrlkc pn 

669 

3V3 pm 

568 


Belgian rate Is for c ora e r t B rie francs. Financial franc 62A0-62.70. Sir -month forward dollar LOO- 
MS c pm. Uflionth L23-U3 c pm. 

DOLLAR SPOT — FORWARD AGAINST THE DOLLAR 


CURRENCY RATES 


Ua> 

Bm* 

m» 

% 

Spedal 

Oraertag 

WWB 

Exropraa 

Chnwcy 

UM 

Sterling 


077876 

0692743 

US. Dollar __ 

M 

13079 

136415 

Canadian S ™ 

7.90 

* 

135554 

AmrianSch. _ 

4 

164001 

143956 

Belgian Franc . 

8 

48.4196 

41097D 

Dmdrt Krone _ 

7 

8.7625 

760623 

DcaUdwMark 

3 a 

N/A 

267662 

Netit Guilder _ 

41, 

263155 

234 IB1 

French Franc. . 

*1 

N/A 

6.94243 

hattan Ura_» 

113 

169282 

150563 

Japanese Vra . 

2h 

18167 

162225 

Norway Krone 

B 

071479 

7.74570 

Sowtah Peseta 



163.771 

145.927 

Swedish Krona 

7h 


735675 

SwtasFrmK. _ 

V5 

N/A 

L 70642 

Greek Orach. _ 

2(P, 

173336 

154601 

IrtahPom 


iutr, di 

0.776620 


Mesa 

Day's 

spread 

Ctase 

One MMh 

% 

PA. 

Three 

months 

% 

PA. 

UKT 

13680-16855 

16745-16755 

031 -028c pm 

231 

070065 pm 

161 

FretedT 

1.4898-13035 

14945-L4955 

035-030c pm 

439 

1.90-1.60 pm 

<66 

Canada 

13330-13375 

13065-13375 

OJG-OOSc dta 

-038 

027030 dta 

-065 

Netherlands . 

28020-2.0240 

26145-211155 

030027c pm 

L70 

0.974L92m 

168 

Bekpua 

3637-37 J1 

37303720 

lpm-1 e dta 




. 

OenBork 

667^-6.75^ 

6J2V6.72L 

130200m dta 

-334 

4.404.90 db 

-278 

W.Gemtay 

L7730-L7960 

L7880-L7890 

Q50-0.47pf pm 

326 

134-L49pm 

3.40 

Portugal 

137i r 139(, 

1384,-139 

80120c dta 

-871 

260-310 dta 

-827 

Spam 

124.70-12630 

12620-12630 

75- 150c dis 

-1077 

250-350*, 

-937 

Nonaoy 

hA3-6A7i 2 

isoicum, 

666V6671, 

430430m dta 

-3.71 

-775 

900-11.00 ifls 
122S-12.75db 

—3JW 

-751 

France 

5.94V5.98A, 

5.97-5.971J 

0350.70c dta 

-133 

135-160 db 

-ua 

Sweden 

621-626 

62462412 

125-1. 40m dta 

-235 

3.40-370 dta 

-228 

Japan _____ 

138.95-139.90 

13960-139.70 

0.4OOi37y pm 

331 

125-120 pm 

331 

Aattrt* 

1248-1261 

1236(2-1237 

3£O-2.fa0yt) m 

268 

960800 pH 

271 

Swkzeriand .. 

14565-1.4760 

L4695-L4705 

0480.44c pm 

377 

130-125 m 

348 


CURRENCY MOVEMENTS 


T UK and Ireland me quoted In US currency. Forward prarainmi nod dbemrto apply to the USdoOmandnot 
to the MMtknd currency. Bedpan rate ta tor oamertlM francs. FtmxM franc 3735-37.®. 

EURO-CURRENCY INTEREST RATES 


May B 

IMI 


Sterling 

wmzm 

-196 

UJ.Drttar 


-66 

CanaBan Dollar 

■eUS 

-1X4 

Austrian Scaling __ 

1383. 

+103 

Belgian Franc — __ 

1001 

-46 

Danish Krone 

933 

+33 


1476 

+2X7 


1746 

+236 


1352 

716 

+142 

-129 


lira .. — 

473 

-183 


2266 

+692 


Morgan Guaranty changes: aw rage 1930- 
1982—100- Bank of England Index (Base average 
1975-1001. 


OTHER CURRENCIES 


U«y8 

Short 

tens 

7 Days' 
noacaf 

One 

Umh 

Thee 

Months 

SBt 

Months 

One 

Year 

Sterling _____ 

*r9h 

9VJJ. 

9i-« 

8V8% 

8WV 


U.S. Dnllm 

6fi-63 

6VM, 

£»U-45[1 

7A-7& 

7*8-7*, 

74-7A 

T\-T\ 

Cal Dote 

. 6VW. 

6V7 

TVa. 

SVIPt 


D.Go8ftr 

SJl-5 4 

5A-5& 

V.-5A 

5A-5JV 


51-51 

Sm. Franc 

aV2*e 

IVPt 

3>r3W 

3VXV 


3V< 

Oeutsdinurii _ 

3V3L 

3V3L 

3V36 

3V35. 

3U-3U 

3U33 

Fr. Frmrc 

S-S’a 

8-81, 

OrSVt 

8A-8& 

-8A-4U 

aa-Bft 

ItatanLire — 

9-11 

10-lKa 

94-10*2 

96-10*2 

9V10*j 

UPo-lO** 

0. Fr. [Fin.) __ 

Mt-7 

7-7V, 

7*8-7*, 

7A-7ft 

7*0-71 2 

71-71 

B. Fr. (ConJ __ 
Yen 

3V4 

3n-3h 

7-7% 

3H-3% 

7-7*, 

3V3S 

7*0-7** 

3V3L 

7A-7H 

3H-3V, 

0. Krone _____ 

um-up, 

wv,-iflv 


10*»-l(Ps 


lOVlO** 

Aslan SStaJ 

3V4 

N/A 

46*, 

4VP. 


4VP* 


May8 



UJLE- 


26205^6325 

1 23470-23500 1 
S7327548J245, 
|7.2b65-7-2835| 
l22L05.224.35l 
13XQ70-13JBW 

H11&2S* mi 

13W25-1402W 
0.45525-0.45535 
I 6220*230 | 
I4J19CMJ325I 
2020.95-2031 .80 
1 29125-2.9200 1 
626506^710 
3-5455-XS545 
33505-33680 
5JB30-53490 
54.75-5600 
603656X420 


UxxHcnn Eurodollars: Two yeora BV-8>a per cent; Owe yean B»z-W» percent; low years 8Vf 
per ceiic flee yean 8%^% per cent nranfaiaLShanrUnn races are call for US OoBars and Japanese 
Vert others, two days' notice. 

EXCHANGE CROSS RATES 


L56M-L5720 
L4O4O-X4O50 
285880-28.7310 
43540-43560 
131.45-13365 
7 ABO-79050 
69.50* 

82860635.40 
027100G27J25 
37 JO-3740 
24670-24690 
1206 00-1213 DO 
L7420-L7450 

3.7495-3.7505 

23215-21235 

2008029120 

33010-32000 

3L55-3265 

36725-3.6735 


Ira 

mm 

MM 

Ed 



BjW 

EE 3 

El 

m 


c 

n 


29% 

2346 

1061 


PSt 


ra 

6225 

% 


Kail 

X7B9 

139.7 

5.973 




■*-'1 

3735 

DM 

0334 

ESI 

3 

7833 

3341 

0622 

PH 

7226 

0747 

2078 

YEN 

4274 


1260 

1000. 

4226 

1032 


924X 

9366 

2666 

F Fr. 

1600 


2994 

233.9 

10. 

2461 

3373 

2161. 

2237 

6222 

5 Fr. 

0-406 

i O 

1216 

9563 

4663 

L 

1371 

8782 

0.909 

2528 

H FL 

02% 

0.4% 

0687 

6933 

2964 

a730 

L 

ET 1 

0-663 

1844 

Lira 

0462 

0.775 

1385 

1082 

43Z7 

1039 

X561 


LOSS 

28.79 

"c % 

0447 

K 553 

1338 


4470 

1300 

X50B 

9666 

rm 

27m 

S Fr. 

1606 

ESI 

4611 


1667 

1.956 

5422 

3414. 

frV.Y 

m 


Yen per XOOft French Fr per 10: Lira per XOQO: Belgian Fr per 100. 


MONEY MARKETS 


Base rates down to 9 per cent 


UK CLEARING bank base rates 
fell half a point to 9 per cent 
yesterday as the Bank of England 
cut Its dealing rates in the face of 
a sharp rise in sterling. This fol- 
lowed much better than expected 
results for the Conservative Party 
•in Thursday's local elections and 
the market showed its confidence 
in a return to power for Mrs 
Thatcher by pushing the pound 
sharply higher. 

The Bank offered an early 
round of assistance and declared 
beforehand that any bills offered 
would be taken at 8 ta per cent, 
irrespective of the band. This was 
seen as a novel departure from 
normal practice. On the one hand 
it altered the yield curve to a true 
rather than reverse curve but only 
to a nominal extent since it was 
fairly clear that discount houses 
would not be dealing at the longer 
end anyway. 

Three-month interbank money 
was quoted at ffta*8% per cent, 
down from 9-8% per£ cent on 
Thursday, while weekend money 
traded between 10 I*er cent and 4 
per cent _ 

' The Bank or Engtondforecast a 
shortage of around £850m with 
factors affecting the market 
Including the repayment of late 
assistance and bills maturing in 
official hands together with a take 
up of Treasury bills draining 
£ 5 19 m and a rise in the note 
circulation of £235 m. In addition 
banks brought forward balances 
£24 5 m below target. These were 
partly offset by Exchequer trans- 
actions which added £l65nx 

To help alleviate the shortage 
and also to give a message on 
Interest rates, the Bank of Eng- 
land offered an early round of 
assistance at 8% per cent in all 
four maturity hands. Discount 
houses were obviously inclined to 
unload short term paper first and 
as a result the Bank bought £147 m 
ofbill5 outright comprising £2m of 
local authority bills and £41m of 
eligible bank bills in band 1 at 8 ta 
per cent and ElOlra of eligible 
bank bills in band 2 at ffta per 


cent. 

The forecast was revised to a 
shortage of around £900m 
before taking into account the 
early help and the Bank gave 
additional assistance in the 
morning of £173m through out- 
right purchases of £9m of Treas- 
ury bills and £43 m of eligible 
bank bills in band 1 at Sv* per 
cent and in band 2 £I21m of 
eligible bank bills at 8 7 ra per 
cent 

Further help was given in the 
afternoon of £504m through out- 


right purchases of film of local 
authority bills and £231m of 
eligible bank bills, all in baud 1 
at 8% per cent and £262m of 
eligible bank bills in band 2 at 
per cent Late belp came to 
£75m, making a total of £899m. 

The average rate of discount 
fell to 8.4981 per cent at yester- 
day’s Treasury bill tender from 
9.1731 per cent the previous 
week. The £100m of bills on 
offer attracted bids of £4d8m 
compared with £497m for a simi- 
lar amount the previous week. 


FT LONDON INTERBANK FIXING 


(1190 ajn. May 8) 3 mstttn U.S. dollars 


M 71* 


otaer 71, 


6 monos US. doUras 


mo 7 & 


dfor 7i 


The fixing rates are the ariuunezic meant, ro u nded to the nearest omr-dxteeotli elite Mud 
offered rates for SlOm quoted by tneauruet to fl%« reference barite at 110)0 a jh. earn wmrhteg dojr. 
The hauls ora National WntmCnster Bank, Bank of Tokyo, Deutsche Boric, Banoue National* de 
Paris and Marvin Guaranty Tout. 


Mayfl 

OrernlgN 

Obc 

Menu 

Turn 

Months 

T*ree 

Mocdo 

Six 

Bill, ■■hr 

Lambrnd 1 
Inter, ention J 


335-365 

e /<-*** 

3.75-3.90 

8/.-8i 

J-3V 

360-3.95 

8J.-8i 

360-3.95 

BL-B& 

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Zurich 


328125 

5V5*» 

364375 

— 

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178125 






imSSSS^^m 


5.70 

lllr-12 

7V7*, 

11VXH, 


74-71' 

10V-10H 

Awifrnl 


Dubfln 

11-na 


■OBI 


LONDON MONEY RATES 


M«8 


Iraerbank 
Sterling CDs. 


Local Authority Deposits. 
Local Authority 
Dhcoaat MW Deposits) 
Company Deposits 


Finance (loose Departs — , 

Treasury Bills (Buy) 

Bank BINs (Bay! 


Fine Trade BUli (Buy) . — 
Dollar CDs 


SD8 Linked DceosHl . 
ECU United Deposits . 


Over. 

«** 


UJ-4 

n 

9V5 


7 days 
notice 


9V9J, 

Vi 


9 

9h 


Menu 


9 

SB. 

9 

s 

& 

& 

9*a 

6.95-6.90 

6-&V 

6Wi 


Three 

Months 


SI, 

9 

8>l 

Bh 

BU 

Shi 

80 

- 815 
730-795 
6^-53, 
6 V6V 


Six 

Manthi 


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§ 

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63-6, 'j 


One 

Year 


BV8H 

8U-0* 

84 

n 

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an 


7X5-790 

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7b-7 


Treasury Bills (soW; onetnomh 8)] percent; thr e e- m o n ths BJ, per cent; Bank Bills (sellJ: one- 
noath 8!i per cent; three months 8A oer cent; Treasury Blits; Average lender rate of dhtaum 
8.4981 pa. ECGD Fixed Rate Sterling Export Finance. Make up day April 30, 1987. Agreed rates 
tor period May 26 to June 23, 1987. Scheme I: 1X29 p.c_ 5chemes II & III: 13-11 P-c. Reference 
me lor period April 1 to April 30, 1987, Scheme IV; 9943 px. Local Authority and Finance Houses 
seven days' notice, others seven days' Died. Finance Houses Base Rate 10 per cent from May 1, 
1907; Bank Deposit Rates for sums at seven days’ notice — per cent. CertMcaus of Tax Deposit 
(Series 6>; DaposH £100000 and oxer held under one maotti B per cent; one+hree months 8% per 
cent; three-six months 8*o per ceau six-nine m onth s Bhi par cent; nine- 12 months 8H per cent; 
Under £100,000 8 per cent from May 6 Deposits held under Series 5 1(R* per cent. Deposits 
withdrawn for cash 5 per coot. 


Record day for equities as Gilts also surge 


Account Dealing Bates 
Option 

•First Dectxra- Last Account 
Dealings tions Dealings Day 

Apr 27 May 7 May 8 May IS 

May u May 28 Hay 29 Jus 8 

Jon 1 Jon 11 Jun 12 Jan 22 
• Mew Dm dtodkogs may take place 
frana 4MM am two bustoea. days earlier. 

The Thatcher Government’s suc- 
cess in the British local elections 
was greeted- with a wave of enthu- 
siasm in the UK securities mar- 
kets yesterday culminating in the 
biggest daily rise recorded by the 
FT-SE Index. The equity sector 
quickly soared to new peaks, and 
was further encouraged by the 
widely heralded cut of half a point 
In UK bank base rates — which 
promptly brought predictions in 
the City of another rate cut very 
soon. 

Goverment bonds also surged 
upwards on the back of renewed 
foreign demand, and the author- 
ities took the opportunity to 
announce another £Lbn tap stock. 

The FT-SE index jumped 20 
points within the first hour, and 
barely looked backwards until the 
end of the session. When the mar- 
ket moved into the new trading 
account period at 880 pm, the 
index showed a gain of SO points. 

Prices were trimmed at the 
close when Wall Street opened 
uncertainly, but there was no sig- 
nificant dilution of London’s 
buying enthusiasm. At the close, 
the FT-SE 100 index was 48.6 up at 
a new all-time high of212&50. The 
FT ordinary climbed 30.7 to 1658, 
also a new peak. 

The Government’s election suc- 
cess raised expectations that the 
Prime Minister will next week 
announce a date for a general 
election in the UK Sterling's con- 
tinued firmness following the cut 
In base rates strengthened the 
chances of another cut— which 
would precipitate a reduction in 
UK house mortagage londing 
charges. 

Equity prices surged across the 
board, with consumer issues 
responding vigorously to lower 
interest rates and industrial 
stocks to confidence in the econo- 
mic outlook. Oil shares rose shar- 
ply as crude prices remained firm. 

British Telecom, always 
regarded as a belwether stock for 
prospects for Great Britain pic. 
moved up sharply in hefty 
turnover, imperial Qwwiroi 
Industries, Shell, GEC and most of 
the other market leaders marched 
forward on domestic and overseas 
demand. 

Overseas buyers returned in 
strength to the phanunceutical 
sector. Flsons challenged the £7 
mark as more City analysts turned 
bullish on the stock. Glaxo rock- 
eted ahed on rumours that on 
Monday Salomon Bros will make a 
major recommendation. Salomon 
has been scrutinising the recep- 
tion in the US for the latest drug 
products of Merck, the US drug 


FINANCIAL TIMES STOCK INDICES 


GovernimtSes. 
Fixed Interest — 


Ordinary V. 


GoUKtaB. 


OrtL Dtf.YleW ■ 


Earnings YH.%(MD — 

WE Ratio (net) (-1 

SEAQ Borg*)® <5 pro) 
EqoKjr Turnover (£m) — 

Equity Bargains 

Stares Traded (nd) 


Opening 

16420. 


May 

8 


9332 

9625 

1*587 

438.7 

3.47 

627 

14.92 

53,938 


M*V 

7 

MW. 

6 

5 

UV 

1 

Year 

aw 

9253 

9266 

. 9231 

9X96 

9226 

9744 

9766 

9748 

9737 

9734 

1 ,/jnn 

13405 

1626.9 

X626.9 

13305 

4463 

445.9 

4536 

4444 

258.4 

334 

331 

333 

335 

467 

839 

833 

838 

838 

man 

1438 

14.77 

1469 

14.70 

1X79 

43676 

5731T 

42687 

4X456 

. — 

139930 

1349.78 

169X32 

339338 

67543 

52,960 

46331 

50341 

49378 

30389 

— 

S6U 

5853 

5924 

312.2 


( 1987 ' 

. Stawe- Cwradlailwu 

High 

Low . 

- High 

Low 

«32 

84.49 

1274 

4938 

(80) 

(6/U 

(M/35) 

0/1/75) 

9825 

9023 

105.4 

5033 

(8(5) 

(2/1) 

(2B/U/V7) 

anna 

Xtsaj 

X3202 

X6587 

494 

mm 

-cm 

WSH7) 

12EAHQ) 

4856 

2882 

- 734.7 

433 

Q4W 

a»a 

05083)- 

06/10/71) 


KE. ACTIVITY 


indices 

May 7 

CDt Edged Bargain 

Efrlrity Banjotns 

Equity Value 

5-0m Average 

Gilt Edged Bargains __ 

Equity Bargain 

Equity Value 

■ 186.7 
3432 
3^336 

- 1863 
3163 
27803 


May b 


1953 

3002 

2,728*3 

UOjQ 

305.9 

2AOIJO 


10 ajn. 
1648-1 



11 ajri. 


Noon 


1 p.m. 


2 p.m. 


3 p.m. 


4 p.m. 


16523 


16553 


16522 


165Tij 


1657.7 


1661.4 


Day's High 1664.4. Day's Lowl642L0 Bads 100 Govt Secs 1910/25, Fhrilti. 1928, CMWy 3/7135, Grid Mines 1279155, 

SE ActMtj 1974, -NB-1A50. 


LONDON REPORT AND LATEST SHARE INDEX: TEL. 01-246 8026 


group, and believes that Glaxo’s 
Zantac product is on the brink of a 
significant success in transatlan- 
tic markets. 

- But Beecham were driven down- 
wards by hints in the market that a 
substantial vendor placing is 
planned, which could postpone 
the placing of sponsored Amer- 
ican Depositary Receipts planned 
for this spring. 

In the gill-edged sector, prices 
were I Vi points up at mid-session, 
as firmness in the pound signalled 
the widespread foreign support 
for British Government securities. 
Prices topped off before the end, 
to show net gains of % of a point 

The authorities supplied stock 
in the index-linked sector, where 
the 2024 Issue was taken out in 
brisk activity. The new long tap, 
£Um of 8 per cent 2002-06, while 
something of a surprise, was seen 
as an indication of strong foreign 
inflows into Gilts—" from Japan, 
the US and the Middle East, as 
well as Europe,” as one major 
dealer commented. 

The tap Is up for public auction 
on Thursday and the Bank warned 
dealers against any repetition of 
the pre-issue dealings which 
greeted the announcement of last 
week’s Treasury sale. 

Boots rallied from initial dull- 
ness to close unaltered at 294pas 
a spokesman for the company 
emphatically denied market 
rumours that it was about to with- 
draw its drug Nurofen from sale 
He also pointed out that a report 
of a fatality after taking Nurofen 
related to a one off incident invol- 
ving an asthma sufferer. The com- 
pany has since revised its packag- 
ing wording to conform with 
Department of Health require- 
ments. 

Associated British Foods 
(ABF) clinched a major deal, 
acquiring 455m shares (23.7 per 
cent) in & & W. Berisfhrd from the 


Italian group Femtzzi at a cost of 
£133. 2m. ABF regards the purch- 
ase as an opportunity to acquire a 
substantial investment in a group 
which is heavily involved in areas 
related to its own food manu- 
facturing activities; It intends to 
hold the stake as a long-term 
investment S. & W. Berisford 
surged higher to close 30 up at 
308p while ABF ended 27 dearer 
at 382p. 

NatWest outperformed the rest 
of the big four banks with the 
recent sluggish trend in, the 
shares giving way to strong 
demand which lilted the price 22 
to KOp, after a turnover of almost 
8m shares. Lloyds added 4 to 542p 
and Barclays and Midland 3 apiece 
to 5I8p and 678p respectively. TSB 
made rapid progress and settled 
3 V4 up at 85Vip. First National 
Finance, widely tipped as a 
takeover target for TSB, jumped 
14 more to 305p for a week's gain 
Of 35. 

Insurances advanced across a 
broad front Of the composites Son 
Alliance jumped 25 to 888p and 
Royals IS to 889p, while Guardian 
Royal Exchange moved up a simi- 
lar amount to 925p. Mine* Hol- 
dings, still boosted by recently- 
announced last quarter figures, 
were 9 up at 304p. 

Brewery investors focused their 
sights on leading issues and 
tended to disregard most regional 
stocks. All the majors scored dou- 
ble-figure rises with the exception 
of Guinness, which improved only 
S to 328p. Whitbread, due to 
announce preliminary results on 
May 20, jumped 13 to 358p. Bass 
advanced 12 to 9S7p and AUied- 
lyens rose 10 to 432p; it was 
reported that the last-named was 
near to dosing a deal with Alan 
Bond to handle Swan lager in the 
UK Elsewhere, Scottish and 
Newcastle traded well and 
finished 7 up at_252p^ 


LONDON TRADED OPTIONS 


■H 


1 CALLS 

t PUTS '• 

Pram 


KZ3 

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0 


JU. 

Apr. 

AKedtnn 

330 

115 



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360 

88 

98 


66 

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390 

65 

68 


12 

15 

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38 

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130 

41 

El 

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m 

in 

CM 

(*159) 

140 

33 

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160 

22 

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B 

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70 

45 

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80 

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28 

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2 

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283 

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82 

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51 

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137 





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110 

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360 

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203 


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230 

55 

to 

68 

7^ 

5 

8 

(*331) 

300 

37 

48 

» 

< 

9 

13 


SO 

IS 

28 

36 

15 

a 

25 


360 

5 

15 

22 

34 

38 

42 

Bhe Ode 

700 

180 

192 

207 

1 

3 

7 

(•8751 

750 

130 

142 

157 

2 

B 

18 


800 

80 

98 

113 

5 

18 

33 


850 

40 

63 

90 

a 

37 

52 

De Beers 

1050 

250 

275 

295 

13 

f-M 

46 

1*51250) 

1100 

225 

240 

265 

30 

ft fl 

70 


1200 

155 

IBS 

225 

50 


120 


1300 

95 

140 

180 

100 

Efl 

170 

Dtxons 

351 

68 

». a 

_ 

■■ 

6 

_ 

C312) 

360 

mm. 


a 

H 

— 

12 


381 

38 

EX 


Kl 

14 



390 

— 


I ■ 


— 

22 


4a 

IS 

Efl 

t-fl 

Efl 

30 

34 


Option | 

C3 

C3 

m 

O 

O 

Oj 

Brit Aero 

600 

50 

33 

95 

3 

20 

30 

(•*48) 

650 

18 

<8 

65 

a 

» 

90 


700 

2 

27 

42 

57 

69 

72 

BAT lads 

460 

00 

92 

105 

1 

5 

10 

(*537) 

500 

42 

67 

77 

4 

13 

20 


550 

7 

35 

48 

25 

32 

40 

BriL TeHcora 

260 

42 

48 

SO 

1 

5 

10 

1*302) 

280 

23 

33 

48 

lb 

10 

18 


300 

8*» 

24 

33 

8 

a 

2b 

Caahnry SUracmea 

220 

37 

«8 

55 

1 

4 

6 

(•257) 

240 

19 

30 

44 

2 

8 

12 


260 

1 A 

a 

31 

10 

16 

21 


Gtaxn 

1400 

ia 

175 

205 

a 

a 

75 

(-1480) 

1490 

a 

145 

175 

48 

75 

955 


1500 

60 

115 

150 

75 

uo 

120 


1550 

40 

95 

130 

110 

125 

145 


1600 

27 

75 

105 

145 

255 

175 


1650 

15 

60 


190 

190 



140 




39b 

mm 

mm 

3*2 


150 

22*g 

20 


% 

4 



160 


— 

S*2 



8 



10>Z 

X7 


5 

8 



flz~l 

4b 

9*2 

14*1 

13*a 

16 

17*2 



a 

65 


1*2 


•_ 


236 

44 

49 

54 

2*1 

6 

8 


255 

27 

35 

39 

5 

9 

13 

■ 

273 

15 

23 

29 

10 

16 

19 

Stan 

330 

C*-3 

22 


Kl 

BB 


(*145) 

140 

■j 

17 

iJri 

Bri 

KB 

flvfV 


160 

KM 

9 

Lfl 



fl ^T*^B 


390 

148 

157 




■■■■ 


4a 

115 

127 


j 

3 



460 

75 

92 


2 

6 

|fl 


500 

45 

58 


12 

IS 



550 

150 

155 


2 




600 

10a 

102 

130 

5 

12 

IS 


650 

62 

72 

96 

J5 

27 

37 

B 

700 

30 

43 

65 

35 

48 

57 

Hi.' . . 


31 

47 

| ■ 

mm 

4 

n 

(•256) 

240 

21 

32 

1. a 

KB 

9 

FB 


260 

9 

18 

Lfl 

Efl 

15 

17 


Oprioo 

Mra 

Jane 

Jaly 

Aag. 

ttay 

Jone 

inly 

tag. 

FT-5E 

1850 

290 





— 

1 

m- 




ted» 

1900 

240 

242 

20 

m_ 

2 

5 

a 

_ 

(*2136) 

1990 

190 

197 

20/ 

— 

3 

10 

17 



2000 

140 

132 

168 

182 


17 

27 



2050 

% 

115 

M3 

1» 

12 

30 

42 

57 


2100 

58 

85 

MS. 

130 

a 

50 

65 

83 


A Teal Comncis 87,461. Calls 60S6L Pm 
Pirn 2J86. -luderiftag 


I. FT-SE Index, Com 


J85p. Favourable Press mention 
directed bbuying attention to Gra- 
nada which closed 12 to the good 
at B33p, while Associated British 
ports, reflecting the company's 
further expansion into, property 
via the purchase of Aldrych House 
from Legal and General Assur- 
ance for £25<n, improved 18 to 
503 p. US favourite Renters were 
good at 679p, up 13.- while Davies 
and Newman responded to favour- 
able Press mention with a gain of 
19 at443p. 

Among Leisure issues. Fallible 
Basts reacted 8 to 283p on profit- 
taking after the previous day's 
good rise In response to the bum- 
per results. 

Motor component manufactur- 
ers ' FR Group and Dowty con- 
tinued to move in contrasting 
fashion, the former rising 9 more 
to 380p and the latter losing 5 to 
2S9p. Small Distributor features 
included British Car Auction, up 7 
farther at 240p, and Peny, 6 better 
ntseip after news that Goode Dur- 
rani & Muiuniy held a 9.77 per 
cent stake. 

Top Agency Saatchi & Saatchi 
ended 12 higher at 63Qp awaiting 
Thursday’s interim results, while 
WPP jumped S3 to L015p and 
Valin Pollen gained IS to 240p. 

Properties were another ebul- 
lient sector. Land Securities raced 
lOta higher to 453 and MEFC 
shot up 9 to 432p but the strongest 
mover was Peachey, which jumped 
47 to 435p late in the session. 
Slough Estates rose 8 to 243p. 
while heavyweight issues such as 
RosehuMigfi and Hardanger soared 
to register gains ranging to 72. 
Hardanger ended that much up at 
605p while Rose ha ugh settled 45 
better at905p. British Land put on 
6 to 230tap. 

P & O, having underperformed 
over the past day or so. came with 
a run and settled ^ higher at 
838p, only a few pence off the 
year's best Waller Rnnciman, on 
the other hand, weakened badly. 
The shares were bought on a 
“ new-time " basis before the 
Account started and investors not 
able to pay for their purchases 
were yesterday forced to sell. This 
hrought a close of 10 lower on the 
day at 196p, after 183p. The com- 
pany's preliminary results are 
scheduled for Tuesday and 
County Securities are forecasting 
a healthy profit's increase to 

EUm. 

Still overshadowed by the 
possibility of higher raw material 
costs, Ceur*auMs edged forward 
only 4 to 431 p. Atkins Bras rose 13 
to 313p and John Crawtber 
regained 9 to 204p but Corah dip- 
ped 3 to 92p following advice from 
BZW Securities to reduce port- 
folio weightings. 

Yule Cato responded farther to 
the chairman’s optimism about 
current prospects, closing 10 
higher at 476p, while AC Holdings 
bounded 50 to 515p. 

The oil sector sjpearbeaded the 
upsurge in equities. British Gas 
sported 9 to a record UOUp on a 
.•mixture' of local ■ and overseas 
buying triggered by a chart buy 
The increased agreed offferftdfa 'recommendation -and favourable 
Hillsdown for Garner Booth was " Press .comment; turnover in Gas 
subsequently lea-frogged by Pit- shares exceeded 48m shares. The 
tard Group who launched Bn - company is scheduled to 
increased offer for Gamar Booth announce preliminary figures on 
after hours. Garner Booth shares June 17. Double-figure gains in oil 
leapt 27 to 298p. Httard easd a sh ares were commonplace as 
penny to 324p while HUtsdewn institutions and private investors 
rose 8 to 280 p. chased share prices higher amid 

British Telecom 14 to 300p, on a suggestions that crude oil prices 
turnover of 29m, as overseas are set to challenge the $20 a bar- 
buyers responded to the consider- rel level. BritoiL given a strong 
able boost to the Government hoy recommendation by Klein- 
from the local council elections, wort Grieveson spurted 32 to 2B4p 
Among pther electrical leaders following a turnover of 17m 
r.nr moved up 5 to 2j9p, again shares; Enterprise, boosted by 
helped by persistent talk that a Pres* comment, were equally 
predator is building up a share bouyant and jumped 29 to 273 p. 
gtaifA ^ the company. Thorn bmt BP gathered momentum in front 
rose 12 to 688p and Racal added of the first quarter results 
llta to 242 Vbp. expected next Thursday and rose 

Engineers joined the general Ota to 346p as more than 19m share 
advance, although gains in the went through the market. Shell, 
leading issues were con- also reporting first quarter 

fined to a few pence or so. Wol fl® 1 ** next week, put on A to. 
Cook, a weak market recently Q2«. LASMO were up 23 at 283p. 
mainly on fear* about the Bullish comments by analysts 
Caterpillar situation, continued following a meeting with the co ra- 
the previous day's recovery move- pauy stimulated strong demand 
ment with a fresh gain of 13 at for Barmah which moved up 22 ta 
170p. Davy Corporation featured a to 487VSp. Carless Capel, which 
rise or 9 at 192p, while gains of recently agreed a $ 1 12.5m floating 
around 10 were also recorded in loan rate facility with a consor- 
BHP. 233p, and McKechuie, 288p. tium of banks, added llta to 
VSEL moved up 18 to 41 lp. 114tap following a buy recom- 

The Food retailing giants mendation from BZW. 
enjoyed buoyant trading condi- Atlantic Resources gained 3 to 

^ tolJowilIg report that the 

stretching to 32. This wasthe gain company, to conjunction with BP, 
ua J. Saufsbury, at 54«p, whue had made a significant oil discav- 
5“°®* Block 49/9 in the Celtic Sea. 

despatching of final defencedocu- Overseas Traders joined in the 

to* ****** a®*® 10 * 8Ml to 

strom; recommendation to reject ^ pojiy rising 14 to gszp. 

T f BC i25r r Reaewed interest took 

rmt 7 to 147 ^ 

Inlosh advanced 22 to 528p and - Turnover to traded nptions 
there were other doable-figure reached a record 87,461 contracts 
gains too numerous to mention, nmte up of and gff . yi w 

United Biscuits returned to pnjg. 
popularity with a rise of 10 to 
313p. 

Ladbrofce again ruled the Hotel Traditional Options 

sector but eased from the day’s _ M 

highest level to end 9 higher at • 5 • 

407p; it was announced late that • ™ ue^Ln^ May IS 
the group had issued a writ * 
against ExteL 

Selected pharmaceuticals 
showed good gains with Glaxo 
prominent at £14ta up g, and 
Flsans rising 28 to 702p. Reckitt 
and Caiman, still benefiting from a 
recent meeting with analysts, 
advanced £ more to-£10A- Else- 
where, BTR were also favoured 
and pot an 10 to 328p, while ROC 
continued to make headway at 
485p, up 4. Hanson Trust were 
again actively traded (some 13m 
shares) and ended little altered at 
169p. Sunlight Service featured a 
rise of 40 at 340p on news of the 
surplus agreed offer from Godfrey 
Davis; the latter closed 12 lower at 


Reports of booming conditions 
to the construction ma trials 
industry combined with cheaper 
borrowing rates prompted a revi- 
val of demand for Building shares. 
Leading issues were well to the 
fore with Taylor Weodrow promin- 
ent at 409p, up 24. Gatos of around 
20 were recorded in Blue Circle, 
875p,BJPB,735p and Tarmac. 534p. 
Elsewhere, Magnet and Southerns 
were also supported and put ou 12 
to 346p. while the announcement 
of a £5£m rights issue failed to 
unsettle Toy Hones which put on 
13 to 388p. 

Id were an active and strong 
market (sme 4.4m shares changed 
hands) and closed with a gain of & 
at £13% Amersham, scheduled to 
reveal preliminary figures on 
June 8, continued to make prog- 
ress and rose 9 farther to 588p. 

Stores raced ahead following 
the latest half-point cut in base 
rates which triggered hopes of 
Increased consumer spending 
Maries and Spencer made good 
progress on farther consideration 
of the good preliminary results 
announced on Wednesday and the 
shares rallied iota to 249tapi Har- 
ris Queensway, helped by com- 
ment on the figures, put on 19ta to 
233ta while Sears, scheduled to 
announce fall-year profits on 
Tuesday, edged up 4 to 144p on a 
turnover of over 15m shares. Waol- 
worth HridingB jumped 31 to 887p, 
Burton 7 to 320p and Dixens 21 to 
408p. 

Combined English Stores moved 
up 12 to 402p mirroring the 
improvement In Next, 11 up at 
335p, which recently announced 
an agreed counter offer to Ratners 
bid for CES. 

Among a handful of weak fea- 
tures Gee Rosen slumped 8 to 45p 
on news that following stock dis- 
crepancies profits for the year to 
end March are unlikely to exceed 
the £159,000 earned in the half- 
year to end September 1986. Pro- 
fit-taking left Hme Products 4 
-easier at 156p. 


• For Settlement August 17 

For rate indications see end of 
Unit Trust Service 

Stocks dealt iu for the call 
included ' Belhaven, Friendly 
Hotels, Pearl, Blacks Leisure, 
Riley Leisure.. Bridon, United 
Guarantee, J. Wilkes, Control 
Securities, WeUcnuc, British 
Petroleum, Mecca, Benlox, GEC, 
Thorn EMI, Amstrad, Tri centre!, 
Premier Consolidated. Cadbury 
Schweppes and Bats. Puts were 
arranged to Helical Bar, Johnson 
and rath Brown and Martin Ford, 
but so double options were 
reported. 


NEW HIGHS AND LOWS FOR 1387 


NEW HIGHS (3631 
■2JW" /UNOS «US>, IUT . BANK A 
0*SEAS GOVT. STTLG. ISSUES (131, 
CORPORATION LOANS (41, LOANS 
02). FOREIGN BONOS (3L 

AMERICANS (6X CANADIANS (ZL 
BANKS (6), BREWERS (4L 

BUILDINGS (SSL CHEMICALS (5L 
STORES (12), ELECTRICALS (££ 
ENGINEERING (13). FOODS (7L 
INDUSTRIALS (44), INSURANCE 
LEISURE Oh MOTORS (6L 

O), PAPER (8). 


NEW UMB OS) 

AMERICANS (5) Coleate-PUmllva. 
imBeo, Sara Lm, Saul (B. FT, 
Tran oam uHca. CANADIANS (1) Can. 
ImpcrW Bank, BANKS nj 
Bank. CHEMICALS (1) SuteBPD. 
STO WES (1) Frsncft Connect tawi, 
ELECTRICALS 1 (1) Pffcu SSai! 
FOODS a> Brtwmkor, INSURANCE 
(2) Al ex a nd e r 4b Alexander. Torchmark. 
NEWSPAPERS a) Hewn lutLsiac! 
JJ*- PAPER (1) Scott Paper. TRUSTS 
(1) Nth. Scotland hw, OILS (1) 
g g gg* MINES (1) Inda 


4 




s 

1- 




























































































































































































































































•SV 


M;,v 



Financial Times Saturday May $ 1987 


LONDON STOCK EXCHANGE 


13 


■ =:?,5 ^ 

• v 
. . • -' ; > 

’r’-L 4 '? 


u5[! 

' r ‘ -i 3rt. 


•■ • Hr. 


“■ilia. 

•- 

; 




■ « c 
: im\ 

-Jli 


• ..'I . 

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.-I 


:? 


. , iZ t 


Oi-’i* 5 ’" 

t; ;• • 

: t 

. );«•' .- 
• * i< 




'-.v' 


DEALiNGS 




lOfcgcLit 1HO« 

m 




Mali* of bral e era daae atom Mw save tom 
laic ThuKuya stow fucbuge OflktaJ Uct im alimW 
MrmUKon. 

-JeST*** rata la ttom nacartHra we included In tto FT Sham 
_ UnUs* otbarwlea Indicated . denonitaatttHi* . are 


token wte» consent ton 
not be wt W wd wttboat 


lirianuhn 


1986-91 


The arlera art those at wwoi tte : bastne** wu dm 
m Tnonday and-settM through tta Stack Embuh 
I n ord er ^ meudon tot In raraadlna order wfelca 
hnvest ftttnivfl pnm. . 


**p and trim are la 
h m 24 noun wn s m 
TUtmn aystaff- they art not 
- - . — ..... duto tto oayt highest and 

toSjKs-uufe** ** 

tototk |mnl^WPrf.«En M tIM*. 


CORPORATION & COUNTY 

London County Stoic 1920 <24 OUS) 

< sa r ^ ,9sa 

Aberdeen (Ot v of) iD-SOpe 20 It XlOnra 
arnrinptom Dittia Cooncd 11 hoc 2012 
C1t79| (SIS 

Brtml (City e 0 llfepc 2004 £114% 

lnS tCJty ge ishtc 20oc si si cars* 
Manchester Cores Jnc 1928 E27H (6/5). 
INI Sk 1941 £24>a (SIS). 4pc U4 
(W5i 

NewwBej^BOft-Tyne «3ty oo iiUpc 2017 

UK PUBLIC BOARDS 

£25 M 

£97. MpcDb 1993 

Ob 1991*93 £9214, 


whlefc no bra/aera wn recorded la Thorsday'a OMeto 
la the tome provisos dm la Shrao with tba 

A Barmina 

sk 


‘ Rand 
Him 


■••tow Rand Md (RO-10) dSO S C6/S) 
fare Wtitao Arnold TrttJOO 10_WS> 

*«jfra!r 

WWndi oob) 152. 


BtoKLn (20001 £1744. 54. 

- „ New (10(0 132 3 

Bemrose Cere Thacfrt (bit 64 «s/s> 
InePrf (til 240 60 


igczdiDb 7 ^^ ns 
Luma Inds 7S«*KLn 1089 
Lyaa a t.m 185 
M-K- Hettrit Grp 74ioeLa 
02 HO 

M.V. HUM DM H0o> 48 

McCarthy * StOto 7pcLn 1BB9-2004 

MMM^’soiltMrM S-ZS to Rf C£T) 70* 

Marie? t£ncti*^£l}BO. BlncDti 1983-88 
£961 efia u HJpcOb 2009 £120 (6/5) 
MartMiy Wltoa lOaePf (£11 116 (5.33 
MasseyFarguson HfdS* 7iocDb 1987-92 
£86 CHS) 

McndM Uotrai *PCM ffllVIJ 
Metal Sox War 76-846 (£13). 4.9scPf 
6* SJ. lOlPCtn 1992-9/ £103 1 

Minty' HL4 Ida 10.6 
Monsanto SpcLn 92-97 £69 1815). 

Ln 02-97 £724 C6/5) 

Moron CradMo wn* to tub 122 6 

N — O — P 


Saoao Hides 7ocPf «1i 118 dim 
so otto ceren £ri> LM-75M ism 
Stofi Furnttnre Hkto* HocPT (£1) 133 

# 7$SVf Jis- 2S5 

Stamm U- R,1 07 M) CzfiH 

Scodsud (HJopfi (ioo» »7 IMS 

Sutclffle SoeHcBMO Wts 43 S. 939X71 0S1) 

06 ‘ 

Swan (John) Sons 390 60 
SymwMs Eno’o (So) 304t 


F. to C. Entarertto Trust Sae 8 Warranto 

F^u^W>c1og'U«r J ob« 

Fljm Nat'mal Finance Corn lOpcLn 1992 

Jump. 


■ £98 
Oolnl 


Itodfr (JO.OI) (Enramn FtoW^B-lVlS 


I 

191 Sletaal 


3J5) 




7I.P 


BUpc 


TDK Cerpn <Y50) *204. 

Tl Cp 7.7prt.B 1 

Tarmac “ 

Tarry 

T*to 

Db 1980-94 £80«j (l/» 

A^^iomr, 1 ... 

TeKos HUn Wts 26 7 (6/5) 

111 IAS) 

Tennoco lOacLa 1 991-93 £160 (§’5) 

_ - j, £,5, 


T*tc Lyg). S’apcff . t£1.> 




(£ 1 ) 


Bento* hSuNHI 
Benson in iniii iiM 


£95 >z 



NatloMl Medial Entereriu* 00.05) S27U 
(■IBP 

Hrw«rth!11 aUBCRf (41) 73 
New* Inter 7Klftl*r USD 66 (1/3). Ox 
2ndPf (£1) 70 ie /a 

Next 7 bcAPT (Cl) 641x9. 1 0ne BP# (SOn) 

48 >i (S/3) 

Nooo 


» ° B 5*.lSb B 90-?8 £117 am. 


Twee 4eeLn 2008 £81 «. 
fU^cASSTmUSi 4.72PCP# (£1) 62 

SUM m- 7 z i2S 

1987-92 £90 (6/5) 

Thorn EMI Warrants 2004. SJgcPf 
(SI) 45 (3/5). 7l;KLn 1080-02 EBOia 

Js». BtorCLa .1989-5# 


Normans SVneLn 99-04 £108 
Norsk Data NV (MKr 20) £19531953 
-80108 204. JS202S S33 NKT 218A3 


1087-92 £90^ (8/0 

SIS). 

CTh^a) 


Tiiimo 


£961. (115). 

Mr 0 '™* 


... ..J9-5# 

'Ni^ H 4lfr j£U 
TKSS. 


ftiPCDb 1982-94 U4«S*. Wpc 

lOtoSb 


1992-63 

CTyriT Port"" Authority 4nc £36 (015) 

Crew Oiap Wtr Authority *aipc 1986-68 
£94*. 

FOREIGN STOCKS 
(coupon* payable In London) 

ASDA-MFI Grp 4toKSW 2002 £1071.9 h* 

■O 

lOldCK 


Dralmr (TFJH) 
Iranian (CD/ 1 
_ ea lotipeo 

Allan Aluinn 


00 

... (£1) 50 
118. A-Non.V 8S9 
pcLn 1993-2003 £125 


North British SOW 52 3 
North Midland Construction 


C10P> 48 


4 7 15 


Db 


3--ndry 61 “ ‘ 
Brit " Amer 


.. Alum.. 

Br. toort-G— ndry 6acPrf (C1> 
_(1/». 10 


a>m n “* v 

1919-94 


lorreem Enolnaerino l»d* BtoicLn 88*93 




Northern Fooda 7UpcOh 
Oliver (GO 450 H/5) 


Astra lEVpc 1092 S103 (6/53 

A ?£?'h a l £' nm ° n '~ nh 00 


isy. 


1995 


BET OtoKBd 2001 £1173. (BIS) 
BP.CWtaMO'ypc 1992 £1094. Zero 

BTR~4WncM 1995 EC1O0AS6 
Barclays Omrsnas In* 6pcBu 1096 Y10* 
Brfttm Land 7ijpc 2002 tioow 
Burton Grp 43.BCH 2001 £.1114 (018) 


Australia llpe 




Inmy Cored 101m 


• ^ - 


Common w sa Mr Bank of 
1992 £1071]* 

DRG G40£Sd 2002 £979 40 
Halite. ffldp.Soc 74K 1992 
BtowLn i5oj £101 *a to ' 

1992 £99-40 BB40 
Hanson Tto lOocBd 2006 £10040 >aO . 
IX. FI nance (Netherlands) 64 in id 1919 

later-Amorican Dev Beak IlitpcSd 1995 

Investors In Industry Grp 94pc 1994 
fMb 

Investor* In laMtrv leal lOpe 1993 
£1 03)|fO ” 

relantf (RspoMIcoO 1 V>ikU 1994 £1034 
0/5) 

Lasmo North Sea 94PC 1900 5108 94 
lonrita .Ffnaoca 44pcBd 2001 5122 (S/5) 
Lucas IndS 54 k 2002 S’05ii (SIS) 

Lucas Inds PLC 54ocBd 2001 SI 36.160 
MERC lOSwcSd 2003 EIOO'tO 40 
Metal BOX S4nCBd 2002 £100 
Metnwoiltoii Estate and Prm Int 84oc8d 
1996 SI 22-444. 84neBd 1908 S132A67 

Nw 9 South Wains It 
Bd 1002 £1064 
New Zealand 1997 £9940 99.329 
Norsk Hydro 7pc 1092 *924 <5f51 

53SS niJSS /SS'tW *«to 114PC 

Rottnu IntsSpcU 1992. DM 139 JUO 
119.10 

Rowntrw Mackintosh 7%acM 1969 £974 
«un 

Simsbury UJ 104 k 1993 £105 h (1/5) . 
Sastorichawaa (Prov of) BMC 1191 SBB4 
too 

Scottish and WiwatHt Br — arias 94pc8d 

Swedui ^KlngSani of) 84<c8d_.1996 .*984 
(5/5). 84ocBd 1096 *99 (6/M. IJijg 

sfoetlo^rpc^ni wg 

TSSoi-^hknif 0 ? 0 4 JSd* 200 6 ?1 0249 
Tnotheuse Fort* 104 k 1992 £1024 (1/S) 
STERLING ISSUES BY 
OVER5EA5 BORROWERS 

American Medical Intol 9%*cLa W11 


. ...i Hides .so) 

an 38 Trt 5pcPrf ai) ***• 

Brit Amer Tob Inveto lOocLn 1900-95 
£1004 (W5). 1 0^pcLn 1900-93 £104 
4 I. 

) UM 

. . 1989-94 £854 

74peDh 1094-08 £85 h 
. . otlnu Comm Core 6 JocFrl (£1) 
B« (6/5). 7 JncPri ttl) 10O <«B 

Brit Shoe Corn Hides SfeecPrf (CD 60 
(IIS). 54ec2nddrf (£1) 52®. SItPOM 

Brooks Serv Grp 142 3. 6cw 143 8 
(BIS 

mm Jackson (SOP) 324 4 3 4 45 4 
4* toil St 4 4! 6 61 7 7t HI 8x 
rewri Bowl Keet . SPCLn 1988-0- £884 


-90 £98 ism 


Koon 65* 

partoanu Textile 152 
Pi tenon Zochonls loncPf (£1) 127 j. 
Pavilion Latsiir. OOol 75 
PaarsM 9pcDh 1088-03 £994 1004 (1/S. 
a.975ccLn 1988-83 £76. fflsoSn 

1 *86-93 £76. 8.25pcLn 1908-93 C94S H 
h 4 CHS). BJpcLtf 1996-2001 £99 i 
1/5). lO'.PCLn 200I-9S £100 (1/5). 

lO'iney. 1993-96 *313 (5/» 

Pentox Dfd OOP) 205 lO (C/S. 4liacP# 
K® - ,s,a,cLn ,9 ®° CSarH* A) 


-94 £9240 

T . , 1991-98 £103 

TrtaoW Jute Factory (£1) 1 TD„ 
romllft* (F.H.) 94UCLU 1904 £275 
TooCal Groan SucKltl) 464. T 
10BS-70 £91 4 C5J3). 74bcLn 

TiSttfiS, A KOB-V (10 b) 

- ,,a - ■.m. 

.5 £B7T"~ — foCncLn 2001-06 

Tnwta and Arnold OncLn 1007-0* £864 

M - - 725 

. (6/5). 

£2Sgc1stDb 1985.S0 CSL 4- 7 JHnc 

Turner and 






Pfiser Inc 00.10) £424 (&S> 

_ — 1t8 

cPf »1) 123ij 


Brown 

_«l*5 


Peck Hunt 

is Hides 94 
r Chadbura 


h. 0/5) 
174 fS/S 


Brown rj) - . 

Bpio/n (AR C5p) 30 


SfcocLr >2003) £62 74 


Borate 7 pcM 1M'7 *106 1 
Bumnwhs cwp an £71 din 
Onrivut G*t> Wts 09911 82. PpcLaJIM- 


C-D 

C H Industrials 7pcPrf (*1) 251 <1Z5» 

■ ■ sdl ^ s ^r«£ 1) teS5 

184 (111) 

Carivns n ^1 22 3 


Phiebm 
Plttard 
Pinssey 
Polly P 
Porta)* 

Porter 

H5> 

Pott ff) tel Corpn 74pcLn 1987-92 

Press ftob eiOpt 115 7 

Pressac Hides lOJpcPf BCD 11B (S/S) 


1992-97 £8) 

lazntl 6PCP1 <£1) 108 IBIS) 
»'2PO-^ 1M4-20OO £205 7 
BpcPf 1993 <£1j 100 


1«Ob'10B6-Vl £91 4 (515). 

1991-98 £10448. O.InCLn 

ra7 

Turner and Hawaii lO.locOb 
£1024. IlliPCDb 1095-200 

Tre? Plywood (HldBS) S4PCPT 1952-87 

TlHek 1 Tor rle/ 5 7 *M>eP# (£1) 35 (5/5) 

Uni Sate 6 DC PI (tl) 54. 54DCDb lOES-SB 
£97>i« iSiSi. SDCLn 1991- 90 £70 

(IIS). EHjjdji 1031 -06 £80. 6 izpcLn 


^1-2006 - - 


Un 


-iSsl . 

4 8 4 4 9 4 4 

Union Inter oat Iona] SpCPf (£1) 50 6. Edlnburab 

^n& i r?3. w »b v ?s£T«tf2 a 2 i 

. . Engllii. fr, 


Quean* 

£1034 


4. 10 4 pc La 


104PCD0 

1989-91 


Cater Grp 

Caiubridoe 

New (50) 126 7 


5-90 £92 (5/5) 
<3W 127 9 - 


9 31. 


Carets Era Gre 104pcPr( (£1) 110 (8/5). 
Carlton Ind* 94ecXn IOBS-91 £974 (6(5) 

Caterpillar Inc sn* (41) 4Vl<b 

Central Sheerwood 10oeP( (£1) 45 7 
<Sitrewav Inds IlncPr# (£D 112 
Ceotrew* Trust iteePf t£1) 118 _ 

Chamberlain PfalpM 50CP( <£1) 66 (1/5) 
Chaanal .Tunnel Inv (So) 87 tE/SL 
Charriuotonn Indostrw Hides BecLn 
1988-93 £85 . - ___ - 

Charter Conaolldatad (2D) <80 OCpu. 43> 

DvIds 

New (So) (Fa/LA-8/5/t 
Clarice rrj noo> 42 
Clyde Mewpn 200 - _ 

Cuts Patera «4 dcLii 2002-07 £53 O/SL 
Smcln 2002-07 £70. 74PcLn 1990- 
1995 £87 904 . 

Coat* Vlrella 43 kP# (C1> 65 (6/5) 
Cohen (A.) N-V a (20 p) 535 85 
Combined Ceetrical ManufSczvrer* G PC 1st 
Db 1907-92 £89 (SIS) 

Combined Enudsh Stores GP 74ncPf (£1) 
BSO. giapcLn 86-91 £701 (315) 

Cookiop GP 7pCPf (SOP) 33 ~ 


Organisation fiUPCPf 061) 60 t6/5). 
4 ID1) 77 (1 ISl. 3>1DCLA 1990-95 


Bp) 111 2 3 5 8. 
itrn 113 s 


ff«4 

QrtS (H. A JJ Gp IOdcP# (£1) IIS 
R.EA. Hides Wts 12 <fi(5>. SocPT (£1) 75 
(1/5). 1 ZpcLn 2000 CIOS (1/5) 

RJR Nabisco Ik NPV 350.93325 (S/S) 
Ft PH BHOCDO 1963-88 £074 IBS). 44K 
Ln 200449 £40 4- OpcLn 1999-2004 

BxPI 

£701®. SpcLn 1988-03 £324. 104 pcLd 
1997-2002 £10O 1 3 4 
Ranks Hovts McOoeoall GdcAPT <£11 86. 
GkBPT (£1) 57 (1/5). 64ecLn 1985-88 
£934 54. 64PcLn 1983-88 £98% (53). 
B4PCLn 1990-94 £900 340 GUO. aW 
Ln 1991-95 £95 IOO 
RotkPtt Colman SocPt (£1) 48 (8(5). 64pc 
Db 1983-90 £02 (S/S) 

Raadfesni National Glass 7ocPf (£1) 56 9 

(6/5) - 

Retd (Austin) Gp Strop- SpcPT OLD 7 20 
44pol*t Si )_ .43 to. 5 *i*3w 


(115) 

United Gas Industries 1D4pcLn 1998-2003 
£934 

Uptaa (Ej and Sons 65 (1/5) 

Vantooa Vlrella 4.s*pcPf (£1) 584 9. 

SAP# (LI) 75 
Vlckars 5 dc PI (£1) 66* 

victoria Carpet Hidg* 138 
Voire AS 8 (SKI 

£83.126195 *SS 8L_ 

554 554 564 564 564 564 SK3434 

W— Y— Z 

WB Industrie# Cl Op) 284 

WCR5 Group SSpcPf 

WSi. Hides - 
WaddlaBtoD _ 

wikP 'pott eri et 4JtoeP# (SOp) 28 (( 
Walker and Salt Hldu* Sp) 120 
walker Green bank 64pcPr 145 (1/5) 
Walker (Thomas) (3c) 42 
Hobday* 64pePf 


Investment Trust ISO s 7 

il Fund* Bed PI tsO.Ql) (Starllnp 

shares) CI4A8 (6/S). RtoUH 30.01; 

lKh^e*4^^l»wit B (£D 87 (615). 

, rfo T, a5sT CKr HWw iiiaen 
Inti Slut* Ejcsbanet et UK and Rep crt 
, IreiaM lOHPtDb 2016 £104 (Slfi) 
ieorcw-CuroM Fund (I DR to Bri (30.10) 
50 SOO 

Melville Sheet Investment* 1 20. New 
itp/La— 5/51*7) 123 (S/S). warrens 
wWmIi (Fn/L* — a/5187) 37 

MHM9«ra« (SO) 328 30 

Murray Venture* Wts tub Ord 1020 
nmc iiwtos wu sua sns ias am 
RotoxhiM (JO (Hiaasj wts ut ord 52 

Smith New Court wt* sue Ord 47 <&|S) 
Srrsta Invsu V*H Mb Ord 70* 

T58 Gilt Fund LdPt* Shs (Ip) loa (Gu'Sl 
THorrrtpn Japan Food Cap SM (59.10) 
£13.70746 

Thornton Pacific tnvac Fund I5A£T) 3200. 
wts we SM 320-P 

Tran»ot>nt mental Service* Go NV Wt* SUB 
Sivs 90 

Value income T to Wts sub Ord 240- 
6 UpcNctCneFi CCD 123 (5/5) 

KM* Industrial Inv Tst (5p) ITS 8 82 

VutaP Catto 1 1 i)pePf 1998-2003 (£1) 134 
(6/5) 

INSURANCE 


Guarowa Roval Exehanev Ala 7 pc PI (£1) 
82 1615)- 7KUl 1985-91 £90 1 4 2 
Pean Gp 64* 

Scottish Lire 
£75 6 74 

INVESTMENT TRUSTS 

44PCPI £360. 

Atlantic Assets Tst spcPf (£1) 46 
Ban i ip (H flora Japan Tst Wu wrb ord 290 
BalUte Gifford Shin Nippon Wts sub 3rd 
28. 104PcDb 2016 £1034 (1/5) 

British Empire Sec Gen Tst IONPCDq 2011 

£105 

British I n»Ct Tst SacOb 1963-88 £954 

cJ!c! Invjt Ts 205 »’S) 

Dana* Ipvto Tst Wts un I Inc 1 Cap 40 
Derby Tto Wt* sub Cap Shs 05 9 
Drayton Cornd Th 2- Ope PI £41 (1/5) 
Edinburgh Financial TstWU sub Ord 18 
9!:. T3WWPCDO 2003 01)5 (1/S) 
Edlnburph tiwst Tto 11‘jpcDb 2014 £1194 

ErallUi Intoriil Tto 104pc0b 2014 £105 5 
4 (5/5) 


re* n mi 

■jraj ri tf 0- 140 

(John) 104PdDb 1990-1 


74pcDb 1987-92 £894 
“• (1/5). 74PCU» 1996- 
lOpcGi 2004-09 


New 


T4pcLn 1994-96 £87 to 


7PcPf (£1) 
(top) (Fp/LA- 


66 

Cooper (AJ Hides 
22/5/87) 145 8 
Corah (peH <£1> 53 (1/5) 

Corner Brook Palp 6 Pa par *WH CD 

&£& SocIstPf (CD 49 SO. 74pcDb 
1989-94 £934. 54pcLn 1994-96 £74 
5 (S/S). 64PCLA 1994-96 £75 80. 

r. 74petn 2000- 


Reed Intmi , 

(£1) 48 (5/5). . . 
mw. 74PCLn £70 . . 

2001 £814 2 (615). 

£99 1 do 

gS2Sre^»^5Sg-JS,iSS. {IIS 

Roe kw are Gp BpcLp 1995-99 £75 
Ropnar 114pcM(£l) >40 r6IS> 

Rotoric 94DCP1 (£1) 116 (516) 

Rowntrre Mecklntaab Wu £520. 7iapcP1 
(CD 71 (6/5) 

RubereM l04oeLo 1990-95 £92 (1/5) 


WL . 

Wbterford 
Waterford 
10 10®. 


tSUS 1 pl^opmeto Bank 104p«Ln 2006 C^Se^%o5e (Hid**) SpcPf (SOp) 24 
S®! gtoto 04rW«a® , 

Crean (JJ lOpda 1995 (lr£10O) (£24 
(1(5) 

cram. Hoasa TtocPf (£1) 105 



Cjem own 

Cre^\4«aer Da Freno# 104pdjn 
12. 13, 14 £1074 4 4 % to 14 
2007 £1444 ISIS) _ _ 


bennwrk , ^Wngoom _ oO ISpcU 
EtoMHHum 1219^4 HI4.M 


2008 


Crysoriata -HldBS 84PCLn 2003° fl 58. 

B4pcLfl 1999-2000 £355 8 (6/5) 
C 1*7* t SO < M 3*3 * 10<d (FPI LA-29 (5 1 87) 

DAKS Simpson Gp £164 (1/5) 

DRG 7Vpam 1886-91 £944 51 _ 

■MjflMv 4ASpcPf (ED 964 84 
DvrMB 6 Metcalf# (IDpt 55 6 8 


Ro^bv Portland Cement 6pcLn 
RuJ& (Alexander) 5-75pePf 90 
3 6 U Stores Wu 27 H IS) 

SGB Gp OUpcDta 1991-94 £984 
STC International Computer* SpcDb 1983- 
88 £954 

Saatehl £ Saatchl SpcLn 2015 £150 2 4 

Salnsbory (J.) 64pcO» 1908-93 £924 3 
(615). BpeLn £76 

Scantron tc HUMS S-75PCPf t£1> 185 
Scan. Go 8p3ji 1988-93 £84 CHS) 

Sam 74ncPf (£11 714 (3/6) 

Sew*. Rocbnck (50.751 *Sps (BIS) 
Sacvricor Gp 6^igcPf l£1] £27 8 f 


(£1) 45 (5/5) 

Glass Group (irCO-OS) (Ik 
W edDwPOd) 1074 ■ hi 4 10 

11 UPC La 1976-95 £83 

Waver lev Cameron SpcPf (£1) 58 (SIS) 
Weir Group 64PCDb 1985-90 £83 
We 1 1 on an iopcpMCI) 212 
Western Motor Hides 252 3 63* 
Westland Group Warrants 49 SO 2 4. 
74pcPf (£1) 129 30. 74ecDb 1987-92 

wmte^rofl a.lpcPf (£1) S3 
Whitworth and M|tcheri Tatourial 74nc 
Ln 1994-99 £83 SJ< 

Williams Hides UHipcPT (£1) 134 C5/8) 
Wilson Bowden (IO01 145 7 
Woiselev 7ocDb 1986-91 £914 (515) 
1993^98 ysm New (IOP) Fn/LA— 22/5/87) 136 


Simon tog's 6pcPf (£1) 65 «1/S) 
smear 310) 5444 C5/» 


(1/31 


Slnreby (H. CJ 204 (1/E). 
Smith (W. Hj and Son ^Hhj 


7 40 
York T 
Tories hi 
£280 

FINANCIAL TRUSTS 

Amer lean Express 00.50) £39 A 5694 
Arbnttmot Gov er nment Secs Trust RadPf 
Ai^J S - 7 Tr^ M 104»cte 1991-96 £90 

2006-11 

£235 40 (1(5) 

Bail 1 k> Gifford Technology Warrants 25 
Britannia Arrow Hldpa 64pcPf (£1) 60 


English Scottish Investor* 9 113 
English National Jnvst Pftl Ord (£1) 225 
<6/51. Dfd Ord 1*5 

F. C AH 1 > nee Invsc 6pc0b 1985-90 £904 
(Ml 

F. C. Eerotruto SLncCnkLn 1996 £206 8 
F. C Fad he liwto Tst Wts sub Ord 113 4 
First Scottish American Tto II.SocDb 
2016 £ITB 

First Union Gen Invto Tto CRQ-25) 130 
>6/5) 

Fnreien Coi Invst Tto 5PCDb 1985-99 
£67 '1 (SIS). 74PCDP 1969-94 £644 b 
(5/5* 

GT Berry Japan Fond DO IOI S25.97 (E/S) 
Gar*, more European Intvt Ta 94ncDb 
1991-96 £97 

Carman Sacs Invto Tst t£i) IIS 
German Smaller Go's inn; Tst Wts sub 

Qobo ^fnvto Tto lOocDb 2016 £1034 4 
4 4. 1 1 4PtCrwLn 1990-95 £363* 

Govett strategic Invto Tst 104ccDb 2016 
£1074 8 (515) 

Gremrirtar Invto Wuseb Onf 293* 
Hambro* Inv* Tst Apc-17pc Stepped Int 
Db 201 B £153 

Investor* Cae Tst SUpcPf £50 (5(51 
London St Lawrence Invto (5s) 1050. Sk 
P f (£1) 4B (615) 

Minerals O/ls Res Shs Fund Ik 00.10) 

Monk* 1 (nvto^Tlt llpeOb 2012 £1094 
(5/5) 

MiH tier List WU to* Ord 17 
Murray Ipcome Tto 6pcDb 1983-98 £964 
(5/S) 

Murray Intom I Tst 6aeDO 1983-BB £90ij« 

(5/S> 

New Darien Oil Tst Wts tub Ord «>i* 
New Tn rob morion Ttt (1983) 12-bDCDb 
2008 ClIS-'iD 

New Tokyo Invto Tst Wts sub Ord 71* 
Northern Sec* Tst SiwcIH £52 (5/5) 
Plantation Tst 74petn 2000 £101* . „ 
Rloht Issues Invto Tst 74 kP( (£1) 60 

Hire?’ Mercantile Tto SpcPf Cast (5/5) 
Scottish cities invto Tto S90 (1(5). SpcPf 
£43 

Scottish Eastern Invst Tto AitpcPf £43 
(6/3). 4pCDb £28 <1|5). 124pcDb 2012 
£1254 


ion a non Br 


1*044 Of-ripn _l5Un»Hoo«J TpcOb 

EWCtritoU d. Frw J 34PCLB 2009 £1274 ^4 (SJ) 


1985-90 


70 (ED, BpeDb 18*7-92 £08*. Sbpc 
Lo £48 All). 74pCLn 1988-93 £81 MS 
Smith IndtnMes 114PCD0 1995-200 £100 

74 mm 

SDmmcrvllte (William) Son 488 (6/5) 
Spilte* 74PCD0 1984-89 £064 7 


(SIS) 

iritsnnit Jersey ffllt Fuad RedPf (Ip) 
CMinasnl. ^nncalre SJL (FFr100) (90 

FFT7SS 778-SZ45 

Daily Mail and General Trust (SDn) £31 
3 4 5 

exploration (5a) 155* 


Scottish' M Oriel 9c Ttt 12 k Stepped Int 
Saoirltles Tit 'Scotlend^'^ijKPf 


Db 2026 £109 10 (5/5) 

ScottM. National Tto SpcPf 55 (»5>. 

1 OocOb 2011 £1034 

Saotrftles Tto Sootlan_ 

7pcDb 1*68-93 £89. 

sfiras'taMt WU sub Ord 55 8 
79 Australia Invst Tto Wt* sub Ord IBB* 
TR Oty of London Tto SPClttPf £52®. 
6pc2ndF1 (£1) 52*. IQUpcDh 2020 


£234 (115) 

TR inttotrlal Gen Tst SfepoDb £292 (115) 
TR Pacific Basin forest Tto Wts uk Ord 
650. S4KDb 1997-2002 £72 (VS) 

TR Technology Inv Tst 5BCPf (£1) 44: 

TR Trustees 4i^cPf £41 16.5). SpcDb 
1972-87 £96* 

TT Finance T14sScDb 2018 £1174 (1/5) 
Throgmorton Trust 12hs?cDb 2010 £1244 

(6'9I 

Throgmorton usm 5':«Pf (£11 KB (S.’S) 
Tribuno inv Trust 94 dcDO 2012 (£30 
DO) £34* 

Vantage Secs Wt* 92 120 -6'5i 
Wltan Inv 3 .7 pep* (£1) 394 (CS-. Bpc 
DB 1996*99 £894 (1'5l. CltpCDO 2015 
£884 1 4 V 

UNIT TRUSTS 

M G Am on can Smaller 5970. Accum 
60-9 

M G Gold GeM 72.3. AECURl 32 
M G IneernaH Inc Fd 6BJ 9 6 
M G Jaoan Smaller 8B4 S.S) 

MINES— MISCELLANEOUS 

Asarto >npv) £isi : (S.'S) 

BisiChi Tin nap’ ss 
BKtwana RST (fiepu 2J 7 
Cons Id Gold Fief OS Cl-pCLh 7 SET. S3 £83 
(5.5). 74ocLn 1890-2202 £79:.- C?4 
ifitfii. 04ocLn BO-93 LS-24 
De Ceen Corald Dfd (RC.95) (Br) S12.6 
124 

El Oro Mno Evoln MOp) 

Norrtchan Invs (R0.10) 13 (6 5. 

Rle Tlntff-Slnc I8rl £10.08 116.85 10.98 
17. Accum £1C. 3.325DCAPT <£11 <4. 
64PCln 196S-S9 £92': [8>». 

Samb.a Cgn»W Copper L IK!0) 50.95 
(5/5) 

MINES— SOUTH AFRICAN 

Coronation Sync IA0.2S) 70 

Now Central Wt Areas (R0.50) £i2i s 

New Klolnfontein Props |R92S' B5 


OIL 

Atlantic Inter npv 49 1615) 

Brit Pet 9PC2nt'P< (£1) BS 7'1 
Burmah Dll fipclriPt (£1) 5p>t (CSI 
6K2ndPr >£1> £61; '6 5). 7’ocPf •£!» 
S7<- B. BpcPf f£fi 75 

- - - - id 10 S 2 3 4 5 


ELF UK' 12 4pci.il 1991 (Reg) £1094 
104 16.51 

G(4 western Resources (npr) 143 3 9. 

PigPf ISO. Oil ’?0 rifSi 
Occidental .30.20. )SSv 'S'SI 
Sholl Trnspt Tea iBr) 12.52 12.55. 5: ; s: 

ItoPt ILK 52’: 

Texaco Insmuri Fin 4*ipcLn 1981-90 £71 
rflS) 

Totnl-Comp Franc Pet B (FFr 5G)F7r S46 

PROPERTY 

Allied Land lO'-PCUlOB 2025 £1114 
I5i5i 

AMnsto Laud 64pcl£tOB 1986-63 £064 

AMU , Ncw 1G* lapel StDb 2011 (fp) £102 
16/5) 

Atlantic Metro p (UK) 12pcLn 1991-97 
£120 

Biltcn rp.i 3150 

Bnr Land 10i;DCl*tDO 2019-ZA (1«M 
Brirton EM 6 l<c1mDB 1983-88 £99 1 

(5.5). 9.50bcltoOb 2626 £1034 (5 5) 
1 1 ,75 k IvtDb 2018 £118 
Cap Ctiuimea gi.xLn 1991-96 £1C1.; 
6>S) 

Cfui/iwosd Alliance 34BCl.t?*> 1995-9S 
£544 S (SS'. 7itpC a -1 litf-M 32 
City Site Cits 10.50Dc1St9b 2017 In • 
£1044 It 5) 

Cclman E. Alec) Inv* EocLr 1991 Ifi 
£B6 : : (1.5) 

Craicion Cc.mb.ntd SSrclsSDa 1SC6-91 
£89 (5'S) 

Estates Ge.il Inv* 4.9 pcPI (SOp) 30 3 
(5 5). Do. Nrw 11.2S PCI StSd 2018 
ifpi £1104 1 (6,?» 

Fh-e Oaks Invs 7pr2rufPf :£1) S3 (6'Si 
Gt Portland Em S 5pclstDD 2016 £97*c 
84. Do New ILLS odi £24 4 4 
Green Prop rlrro.25) 834 7 '615? 
Grevcoat 12.8ocLn 90-02 £106 (5,'5l 
Hammcrtoa S3S 

Land Securities 6pc1stDb 1988-93 £89 4. 
7'jpeUtOB 1991-96 £87. fpcIsrDb 
1996-20D1 £56 1- Ij -'a 74. 1 0K I St 

Db 2025 £10*-» S. Do New lCPCttoOb 
2025 (£50 pfli £334 4 'a 4. 8<iPCLn 
1992-97 £94 4 5 

LOhd Provl Shop lOpClstDb 2025 £1034 
(5 IS) 

London County P'hpld L’held 64oc1*tDb 
1986-95 £85 (6.5) 

London Shop PTv b'.i-cLr 1987-97 £S6i>. 
lOoClstDb 202C £1314. lT.62Socl« 
Ob 201 B £1154 4 

ME PC 4iyKB| (£1) 42':. 6oc1f*MtDb 

1982-96. £89*. 54ocltoMtDb 1M.-C9 
fcB2®. 104rc1ttMlOb 20*4 £1144 
12ce1toMtDb 2017 £1224 (S'Sl But 
UltoLn 3000-05 £86l> u ISIS/. fii^cUns 
Ld 1995-ZOOa £128* 

Peel hobs IOucPi iSOpl 62 (6/S). 9 *sdc 
I stMtDb 2011 £101 rsrTl 
Reliable PnwertleB 600 (5/5) 

RoseM eah Grevcoat Estates llpctstMtDb 

2014 £1164 (S' SI 

Rush and Tompkins Grp 7 .SpcPf <C1) 133>t 
Samuel Properties UpeltoMtDb 2016 
£1144 (SIS) 

She»fbank Property Ttt 6ocPf (£H 142 
>5IS> 

Tharsls 270 I5i«n 


03 Id) £100 20 
Town and Cltv iKlI-iLn 9T-99 £81 a6iGI 
Town Centra SK BocUnlLn 96-2000 £1541- 
W»rner Estate Hid os 104 pcP( t£1> 123 

Wtolrp'wte Intel Hldgs New Ord (5 d) 
(fp) 181 4 5 


Wales City of London 191 2 3 3 8 3 9 
7 8 8 4 4 9 201 ! 

Western Ground Rente 34KltoMtPt) 56- 
91 £780 

PLANTATIONS 

Aoolo-Estoent Plantations iZijpclInsLn 
95-99 £95 (5 31 

Anglo- Indonesian Con UnUi 85-88 £75 
•eradln (5 p> 55 (5/5) 

cnmmotoi Corpn DM 73. BlJPCPf Id* 
too H'SI DpcUnsLn 1999 £115. Ord 
^MOpl 32 (6 5) 

Sennan Rubber (Cl) (Reg) £15 

RAILWAYS 

CSS Corpn HI) 531 .9150 32.95890 _ 

.inadian Pacific, ora dss Ldni nev £10J 

SHiPPING 

Per insular & Orlcntaf Steam Niv SPCPfd 
£84 

5‘i-amcton. low * SOE RM Strain Packet 
(SOP) 450 (1/5) 

UTILITIES 

Barron Transport DM 160 a 623 SO 
Bristol Channel Snip ftroslrcrs (too) 14 
4 i-: 4: 4 4: 5 in 

GTE Corps iSQ.IOi £37.24974 981; <6.51 
lotcrcorr Beige np< <8r> 8F3S8. 366687 
'5.51 

Manenester snip Canal SoePf (En 280 M 
:5 5i 

Mrrw Decks and Harbour Comb Unit* 
IB's SUrcUo 79-6? £80 tlifil. 3HPC 
Do £30 

WATERWORKS 

Bristol 3.SPC iftnly 5l Pf £44 (6'S) 

Cn.v Valley 4.9PC «lmlv 7/ £65 <S/5). 
2. Bpc tlmiy 4» PI £35 (6i5: 4 02SpC 

(titilv 541 Pf 65-95 £76': (IIS' 

East Anglian 7%p:a9 91-92 £914 (S'5) 
Ea'UM.no 71 hkDo 60-32 £60 ■: <1 '51. 

1O':nc0B £»-97 CIOS'; 11/Si 
EStea IdiPcDb 94-OS 105 7*. (1/5). 

1 I.20PCDB 2305-09 1104 4 14 
Fo<knsioite Diatr-ct 7ccDb BB-B9 97i|« 

Let "Valley 3.5pc itm'v 5i £44. s.OSoe 
llir.lv B-i> Pf 95.07 l£864 
Mid -Kent 4.3K Ifmlv 61 Pf 85-87 £98 
1 1 -Si 

M' a -Soto heni 3. Sac (Im'v Si Onl LA Hr 
il*« 

Miu-Sussca ttpcDb 2012-16 (fpi £1124 -• 
hr«ust'< Ccmi.ru 3.5rc umi< 5> Pr 
£46 it 'S' 

Nrrln St-rrey 3 Site £47 6 <6 5). 9.5?e 
it-.'* 5. t4B iG.5i 

Fartlmpufl 3PCDD £30 IH5i 3UPCDB 
L5d .1.5- 

Ss nn 5 San ore* hire 3.5pc (fmlv Si £361 

15 5. 1 5ivr crmlv 5) Pf £41 <5.51 

Su-Kfi-rlarn Sth Srlcldl 1.5 nc .hniv S> 

r.’B: iS'5... IfjprDb 02-94 f91 ll.'SI. 
ll.'bOrclb 95- if 7 £106 7 1LI1 
Sutton D. tenet e.9pc ifmlv 7> £67 C5I5' 
W«t Kent 3 Spc (truly 5> £45 |6 I»i. 
3.15PC «mly 4';1 Pf £5 14S 

UNLISTED SECURITIES MARKET 

Biomvchanlc* intnl <10p> 21 
Snr.ord Laminates Probici New 1IO01 IfP' 
9P 73578 100 2534S57B 
Buriprp Grn 203 5 D. New Up* 197* 
2003 29U0 SO 

Camcruoc Isoteue Labs Inc New (JO.OI) 
if?' 67 

la "nan Sri rot Invest* 7.7oePf 04-08 £12 
Cattle C'-min imitations t5p. 216 (6'5i. 

ISM . fr> 212 1 IS' 

Cebrj Emi-ralfl Mine* inptj 65 (1 >5l 
Cciurora-ihic llbdi 162 4 5 6 7 
Crii. «. lc. .S0d> F30 
Dji.".' Grp S2oePI 97-2000 (£1* 450 

16 c 

EI?ri.-or Maun 6 -CdcPI (£1* tBB ifi.'St 
F-r-i.'^rool Cl u 12Ptl'f-»Ln 92-57 £117 
H'fi. N.-». :»d> ifpi tiiO 3 
lw«)M Grp .jo. 13S 

cat, >i(w ?zr i5i5) 

Coi-d .kaurenee. 175 rl'S. 

K-'rlml'c G'P (2o< 115 (5.5) 

Hsrnbr Gre (Sol 105 

Jonrson fit ilBgl 243 

March Grp New >5p> <fpl 171 7 

Orchid Techr.piogy inc-i 117 20 

Park held Gre 7 dcP 1 i£1) 273 11151 

Povlon Intnl. ^.BSPCPf Id) 45 «6/5l. 

SJZSpcPf Cl. 65 <515* 

P-rklnt Uonn) Meat* ilOp* 478 'tl 50 
Pitt Petr'm B (SCI £0.35 f 1 1S* 

RKF Grp c-TDni LO. 8 (5.51 New <10p) 
i/ei 60 V 

Reliance Security Grp (SOI 167 

Seed Ap-.glMiranta iH-dgs/ I5M 193 3 5 

'lime. Intuf. 1IO01 6S 

Tecnnoiun M (FFtOOi £65.99 ISIS' 

'.‘TL Grp New ,5pi iro) 1ST 8>i 60 I6IS< 
Vi'vev*’. G.raen Centres iS0o> 195 

THE THIRD MARKET 

Arc more Petroleum (lr£0-25l (£0.1 5 (1 ‘5). 
A ilr.10.2Si ICO. 153 0.1575 0.I60 13'; 
•»s 

SPECIAL LIST 

RULE 534 (4) (z) 

Bargain marketd in securities 
where principal market is out- 
side the UK and Republic of 
Ireland. Quotation has not been 
granted in Loudon and dealings 
are not recorded in the Official 
List 

A-Cip D-ve 100 more 44 (fi.'S) 

A9G Mineral* 216 (l.'5> 

Aberdare Caoin Africa 245* 

Acm«X HldBS 240* 65® 1S1S) 


Acorn ^fveur 1 lies 78* 840 79 82 3 4 


Alkane Exp In 17 

Allsata Expire 76 AS1.6 1.65 1.9 
Amber Gold 220 17 is 19 l5'5) 

American Barnck Resaurcre £214 
AmpOl Cxp'n 205* A55.05 
Amtoffntam- Rottentam Bank. FI 754 
Auto Pacific Resource* AS 1 .1 03 
Black Hill Minerals 170 17 (6i5) . 

Brown-Forman Inc Clan 8 US': (5/5) 
lux* A NPV £1549 «5 SJ 
CSF (Thpimon-CSF) FFr 1 600.0 1605.33 
1611.575 1623.0 1631 
Canadian Lencourt Mfnei £25 (IIS) 

Central Norseman Gold 43 5 (6.5) 

Cerebo* Pacific £55.55 (6-5) 

Cltv Developments TlSO 

Cone*. Ault Si- 6 

Coooer vl non Inc Com 5809 <6>5) 

Devcx 77 ASIA 

Db Pont <E.1 1 Dr Nemours £68')* 

Emu Hill Gold Mines IOO 
Energy OH 4 Gel 540.336 
Sorrel Laboratories £1640 
Fraicr 6 Nun 9>;9 
General Gold Rexourrea A50.287 (5'S) 
GolconOa Minerals 62 5 
Gowen valley Mine* 239 420 ASO.BS 
C.38 0.99 1.0 

Grants Patch Mining a SO. 876 (1(3) 

Haorna None Went Ni „ ... „ 

Hill SB Gold Mines 719 39 65 A51.6B 

1 .7 I6l&> 

Hprixon l>aclllc A50.61 
Hunter Resources AM. 006® 

Int Mining 9 10 (6,5J 

InrirClb'e Gold ASO.JO iASP.20) 400 38 

Jamn Resou'Cr* 60 

Japan Fund S'Ui* 11.51 
Japan Radio VJ09.S1 
Jones Mining (ASO 201 359 35 (6 5) 
Kalooorlir Resources AB0.34 It'S) 

Kerr Addiun Mines 8000 (5.5) 

Kc-ritenc Intel 318 4® 

Ksungrton Care HSi-O 1|C (5/5) 

Kullm Malaysia 379 i5'5) 

Lime Rl-rr Gold Minn AS3-20G 
Magnum ROMuiCeS AS0.S74 . ... 

Malaysian Amling Svwcm M»S5-5S 5.620 

MatMisnite "kloctric Industrial V1978.7 
1S90.0 

McCarthy Group R8>: ... . 

Mid- East Minerals -16* 529 A51-165 
>6>3) 

Mount Carrington Mines 35b 
Mount Martin Gold Mines 500 (5.5) 
Murenv Oil Coro £104 (B.S) 

National Electronics icons 1 51-S 
Nations In- Nederlanden (FI 2.5) FI 70'a* 
FI 71 IS 4 I. 7 1 .55 

North Hinder* Mines 9509 _ „ 

All Search 520 fii-9 79 it* 80 90 
AS1.4I3® efifi 6 9>: no 1- 1 . 

OMmn Resourced A51 .069 |6;5) 

Pan Ausrrallan Mining 192 

Pan Pjcibc Ffl S , 

Pargna H'dos SFr 2090.0 SFr 2100.0 
2150 b (5 SI 
Petera»nie Melon Db 
Montfr Electronic Coro VI 770.0 

Plaren Resources Gn> 9* II IS) 

Pose Mon Jiriffl A35.369 P22B 30 * 

ASS 3?7 5 42 
Povev Corpn 229 (6fS) 

Range Resources 31 (l 'Si 
Regal Hotels .Hldgst 19 <5*51 
Selangor Properties 55 1.55 (5'S) 

Service Coro Ini £16.12 
Singapore Land 590 &1 84 (C 51 .... 

Soocre Na'tenalr EH Aguitaine FFr 3579 
i;9 FFr 374 6 85 91 2 
Sonora Gold Coro C512 0 (1.5) 

Source Perrier FFr 7559 

Srlrllnu Petroleum ASO.bai 

SKy Lire Evoln NPV 6009 CS13-8 

Swire PacHc B 259 

Tandem Resources 11 29 105 (5.‘5> 

Terrjm.ir RdSOJrCOl 589 

Targe: Prerclet.m 1AU.ISI 129 f5'5) 

Valiant Cant 24 

Vlr.prij Frpln 0 IS 51 

Visit tbs .Lou's) SAB'] FFr 1115.0 114C.0 
1155 0 .133 5 

WctHc Gu'l* Gold Mine* 1 50 16 A50.333 
Weitncid nf.nrrals 162 
Wong Industrial Hldgs SO. 3 

RULE 535 (2) 

Applications granted for specific 
bargains In securities not listed 
on any exchange 

Alrahlo Ind* (12'-p1 2B 30 1 
Aurora 6'-ocPf l£1) 92 >6 5) 

Barbican Hldgs Mb) 5 1, 95-100 
Bolton H*c I nv (Sp» 73 4 HlS> 

Rurrojon (Jamcsl 340 50 Tl; (S'S) 

Channel Island Commyniratlonc 42S 
Crrete H'dre .1O01 90 5 ibSi 
Evolaura H'das '5ni 40 3 8 .fiiSl 
Five Arrow) <£l) .*-25 30 S 
Fre-rondis Place Hldgs (20s) 95 8 (615) 
Guidohouse Gre (to) 43 «1.'S>. Warrante 
31 12.69 18 (1 '51 
Morvarc Sect '2ai 43 <6'5} 

Hydro Hotel i£.i*u>ourne.i (£1) 310 20 

Jersey Gas .£11 300 (6 5: 

KunlcK LriSure <10p) 31 <-2 4 
Mull* (nv A r£l) 42 
Msrrctt fldpj 407 12 i6.'5) 

Norton vliltert Triumon (Ip) 5 $ 

Oodles Cl Op) 21 ■: 2 Iblfi 
Piccadilly Radio 11 Op) iS 4 S 
Red Rose Radio A NV (iOp> 85 (fi/S) 
Shcohcrd Neame (£1) 665 B 
Trwaltet (Daniel) (£1) F’T BO 
Weetabix a (Non-vtgi “2 7 

RULE 535 (3) 

Dealings for approved companies 
engaged solely in mineral 
exploration 

Andaman Resource* ilOo) 80 <6l5) 

Keren are oil Expln (lr£0.25) 29 ‘t 

(By permission 0 / The Stock 
Exchange} 





£1034 

Inter 

(6/S). -Oo.CBP 




rnoM? 1 1 leirtranne 14>asriA.2ggf *»•«*» 


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csw 

4 4 

2019 


*i 4 «’ a T ,0, ^n“ 87 > 

tete «IW (lort lfolLA-2BtS[m 1S7 

I I 70 1* 

Domtakm Internti GB Waranta 13 

Chemical CtZSO) £49% 504 IBS 

gubNter JtpcPf CSOp) 44 


Textiles siancPf 




SIX* 


*ff , S. tK ijffi ST#’ 1 ? 

(ISSwom of) 94priLn 201* *IOt»* 
S Tvi OJsSW £134*. DO 

IfiPC 2007 *t*Sb 

lifted MAte.MN IBWLO 2008 

£1084 6 HI (6/51 

BANKS, DISCOUNT 

■ex ra&"c8? * ? V4 ! 

12dcLd 2010 £1224 3 4 4 4. 

g^SS 7 JSS 

Mill Samuel SpcLn “ — “* 


80 


EMAP 165 7 2004 SpcPf (C1I 43 

IRA Go ffip) (Ex DM K 7 I I V 
_9_9S 90 901 1. IS lx* 2 Zt 3 It 4) I 
C-R-F. (Hldgs) lOpcPf (£1) IOO* (1/5L 
BpCLll 1988-93 £135 (1/3) 

Emm Prod (HMgaO 104RCIA 1097-2002 

nrn (5/3) 

*013)* Elr,!,,rt T4p*Ob 1387-92 <80 

Raw ssrf“ " ,n 


: «U8>- 
i 4 > 
ICpcLn 


1384-69 £96. 



_ S249. 

93-98 £1074 84. - 149CLR 
NMV?m_'?rapf «1» «* ■ 1 j^ P i|1 ^ 



7Wla 

74pcLn 02-97£M 4(6 5) 

1 *S2 «£o "iooSSi £11 


- TWOpiVOO, eW> ,9<B - 

EMdA China dm 7%ocLn 1993-98 £81 

English Electric SUocDfa 
7oeOt> 1988-91 CBS 
Bteidfbiir Jeweilory HJpcPf (£1) 97 
(IIS) 

EMM Gp 104PCPT (CD ISO* 

Ki 

FUw Art Dvtpfnt 84PGLn 1986-91 £86 
(S/S) 

vgora SijPcDb 1944-99 £934 O/SL 

_5>PCLn_ 3004-09 £60% 

Folkes Go (5o) 484 7 8 
Fortnum * Mason (£1) 839 <6/S) 

^^5^” ,0Wta 

FrapHc inds Oocfin 94-98 CBS 8 

Trsi’as zr" ™* T 1 

Future Hldgs 465 0/5) 

C— H 

GK-auw^Aptometloii S49CO0 1989-94 
C fl/3) ' 

CKN-(UK> 74pcDb 1986-91 . 8984 74. 
_104pcbb 1990-95 £108 


3 PC 


rnscraetioeel 10»CLn 1987-92 <93 


£158 78 




J'&P&SSi 

8ec2bdSb 89-94 *98*. 104908 90-9» 

fe'SiW'rSi 

Sj^tojntWx («n 

n 2 ( S >< C?D% A ?2 JSS (1/6) 
RMmBi lOWjf (£1) 133 40 

fcSSSh^NSii^ Tpeet an 119 40 h. 

, Blj5 s ®S4arww 

wSteeyMann J pteeeMip cPbCT . *4ra 

Db 13-93 £77 *^5?. 1 

£BB4 tB/5L__7dCDB. 8B-93 £87 


MafiU. 96-2000 £89. 

SlWA."- 

Youra *oc9f (Cl) «0 (WD 

COMMERCIAL, INDUSTRIAL 


Cxtra Rubber Soc2ndPf (£1) 48 (6/S) 
Gimrat EJoctric 74ocLn 1987- lz ~ 
74PCLn 19BS-B3 £904 1 
Instrament Carp G1) 833% 
Maters Cora (Sit) £534 


■ <6/51. 
General 
Gen are) 


HW 

Le 1990-93 
Gltota 4. Dai 
(Um Glover 
30 


10 PC 


Capital 208 (BIS). 
E. V Ha^Uf%n 127 


*fs sa 


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4PCLJI 1894-99 


Photo. Product* (10 p) ISO 2 


i MV 


4pcPf <61) 37 

S«MFi (CD 68 
. _ Jdl <&Z*Q> 194* 

*1) 63 

&TcS2ir««) B 'S 

ShWetay 0n> SbFoPf <CD 52 
74VKOO 1987-92_£914 CUSS 
•-I IIMLn £74 





Alrtnre bw nod (FP4LA — 15/5) 200 teHJJMIBl^eM 
AMMtuS WlUon 8M D9 1967-92 592 
jum* Aiuralniuitt S3- of NPV 517 *7 

Alexandar* Hfito A HCfi) 194 

^ bptetoM* 


WUHetra Gra Pf ISl 3 

... loom 84PCUI 1989-94 77 

Hoi^st Afl CDMSO) (Con 50) DM279 261 
281 h 

of nwr *UocLa 1989HM M 9 

Hunrerartnt Gra 64ocPf (£l>_ 157 
Hwrtlra Arad Inds 


Pods 2003-99 5216 


2001-06 «60*. 74p<Lt> 
V. hide S4ML8 - 1994- 



• 1 VL 

. Group 1098 

aSSJmfi Aim 94 bc Pf «f ) t.tt JJJgL 


p* (CD 1129k 

5) 


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St 44 B 4- 1140cLe 1991-96 

£1064 74 . 

imperial Cold Sorafa * Supply (HOJSJ 

iw^fra MM CM* era «FIJU» 
hrtntf .Paint fltraCLn 1990-95 5874 
JeOMaoos Ch oc f lop) 176 
Jobraen A FM Brawn 11 


j I* 248 90 1 

1090 £108 . 

- iiops-U 


123 (3/3) 

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I Indus 84PC Db- 1086-91 

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(CD 

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Ketaiv'Tada IllpscPf (£15 IdUi tVS) 

, wsjarwf , w > w “ ,l " 



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S&tWu 

T24MU »DM9» 51 

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1996-92 £91 (5/3) 
^jLdb 1993-98 





Ladbroke 0(9 

Laras (join) 

"SK m sU! 

L 53i a 

LtotoMK llwda 1992-17 5904 (3/5) 
**«•-« i^lSSSa £9*4 4 



[ BANK RETURN 

BANKING DEPARTMENT 

UABILfTlES 

WtdMStH 

ksTiw 

Increase (+> or 
decrease l— ) 
lor we* 

£ 

. lAZ^OOO 
8^46^44 
W19405405 

£ 

— 2,497338 

— 63,909382 

PtMcDeradU 

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2498035476 

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+ 73351.408 


im AGty^es^^Es 


These lattices are the Joint compBatien of the Financial Times, The Institute of Actuaries and the Faculty of Actuaries 


ISSUE DEPARTMENT 

LIABILITIES 


10,355,007 




njtosjooo 

3k98%66U99 


S|9KMOIiOOO 


£ 

n&s hjbso 

193(345 




+ i^aajoeot* 

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SOflOOfiOO 



Milan, 

18 & 19 May 1987 

AHNANOAL TIMES 
INTERNATIONAL CONFERENCE 

■pro jaararanogyritfa 

’ ABI Ranrerie Imgtou) 

fbrfafcri i te b ii p be jU mfrrn Waart ’ B ri ra ra e K t D galtm'akhyo9rl**inmn caret lo: 

Finaiidal Times Conference Organisation 

MtotoHoujd, Arthur Stm/, London EC4S9A1C 

tetapharw: 01riS2l 1355 loldjc 27347 FTCOhffG. foc01-5238«4 


THEFT 

l a^aiwii g 

CONFERENCE 

16 & 17 June, 1987 
Hotel Inter-Continental 
London 


F1NANCIALT1MES 

CONFERENCES 


ForMomaOba pta* ntum Cbb 
a dv or tiu maen. 

togtns r w fm ycvrhuslrmaatit,ta: 

Financial Times 
Confenenco Organisation 

Minxtsr Houss. ArttvStreeL 
London EC4R BAX. 

AUtmattvlx 
leJac^ottoOVSZIttSS 
Of 59*8*27347 FTCONFQ 


EQUITY GROUPS 
ft SUB-SECTIONS 

Hpns b pMrtkHB tea tmbx 
of sttds pa actite 

Friday May 8 1987 

Tfras 

V 

Weds 

T 

Dies 

r 

Vear 

ago 

lapprot) 

Highs and Lows Index 

Hriex 

Ml 


EiL 

Earnte 

Y>rid% 

(toD 

Gross 
Db. 
Yield % 
(ACTat 

znu 

ESL 

WE 

Ratio 

(Net) 

*d*t 

1987 

todaa 

Mm 

KtL 

iKta 

No. 

latia 

No 

Index 

No. 

191 

W* 

B7 

Low 

SI* 

Ccapi 

M* 

* 

atian 

Low 

1 

CAPITAL E898S (ZU)_ 

■9137 

+13 

758 

2.98 

1736 

732 

87447 

£8225 

67004 

713.96 

89137 

8/5 

696.73 

2/1 

89L37 

86,87 

5071 

1302/74 

2 

Ba8dbgifeterUs(27)_ 

U16S4 

+L9 

739 

2.98 

17.79 

006 

109548 

1097.40 

109972 

79175 

121634 

85 

86879 

5 n 

m&M 

86/87 

4427 

1102/74 

3 

CeBMdtai, CoRdnctba OB . 

148S32 

+13 

748 

337 

1845 

1133 

1436.46 

1457 J7 

145056 

118934 

149434 

113 

11&B8 

2/1 

149434 

113/87 

7148 

202/74 

4 

EJtstrkais Q3) 

ra»n 

+23 

5.91 

342 

22.73 

3132 

221062 

221530 

07232 

KC33 

226253 

8/5 

177222 

2/1 

226253 

86/87 

84.71 

25/6/62 

5 

EJ«ln*lcj C36) 

194510 

+23 

753 

229 

1747 

1137 

195606 

I96SJJ2 

190843 


203338 

33 

1543.77 

23 

2M935 

150164 

1229X1 

80065 

6 

HtoWalEogMslW- 

49732 

+13 

045 

348 

1539 

525 

'PV.bb 

49649 

49436 

404OB 

49732 

8/5 

39335 

2a 

49752 

86/87 

45.43 

50/75 

8 

MriiSiadkleWFbnbs(7). 

49135 

+OI 

757 

306 

15.94 

358 

48120 

47467 

<7232 

25335 

49L» 

83 

355.97 

za 

49135 

86/87 

49X5 

S/1/75 

9 

Motor* Q5) 

33434 

+13 

936 

338 

12.73 

2.96 

J3U0 

33626 

23731 

29038 

33735 

20 

27233 

2a 

33755 

23/87 

19.91 

60/75 

10 

Otter takdritilUeririsCa). 

153171 

+1.9 

630 

336 

1937 

1538 

143125 

159436 

150235 

130633 

15771 

8/5 

217979 

2a 

151171 

86/87 

277X5 

15061 

21 

(WNQnoWPB). 

122513 

+23 

630 

233 

2083 

473 

USS8S 

120019 

119331 

89370 

122533 

8 15 

95037 

2a 

122533 

8667 

6141 

1302/74 

22 

Bn««aadDistItos(22). 

123216 

+13 

7.77 

2.99 

3637 

489 

111614 

112086 

111539 

9233C 

U 52.10 

3 IS 

93834 

2.a 

nsuj} 

86/87 

6047 

1302/74 

25 

Food Maaiauuitiy C25)- 

936.93 

+2.7 

744 

336 

17.72 

732. 

ms? 

914.971 

9M33 

65639 

936.93 

8 15 

73SJ2 

2a 

936.93 

86/87 

59X7 

110274 

26 

Food Retafilng 06) 

238636 

+S.7 

5-75 

242 

2085 

1056 


22201? 

222772 

103554 

230676 

8/5 

16038 

2a 

230S3S 

86/37 

5435 

11/12/74 

27 

WBtoi tested PDkB ML. 

226930 

+23 

4J1 

171 

2738 

a« 

OZuSl 

224133 

223678 

146143 

245432 

252 

1645J8 

2 a 

343402 

25/2/37 

17538 

286/80 

29 

Lrian(3U 

129967 

+15 

5.97 

326 

2231 

9.98 

L26d22 


028137 

85637 

HOLM 

13 

98635 

2a 

130LB6 

16/87 

54X3 

90/75 

31 

PadaaiBg & Paper OB^ 

63132 

+13 

639 

231 

ZL07 

334 

62540 

63259 

62734 

46931 

63239 

66 

49L50 

2a 

63259 

66/87 

4346 

60/75 

32 

PabUstdag £ Prioting Q4). 

370862 

+93 

5.7# 

335 

2237 

1639 

S67O60 

57M.W 

369U5 

240440 

3734.93 

66 

271349 

2a 

5714.93 

66/87 

55X8 

60/75 

34 

Stores 06) 

1869157 

+23 

6 33 

259 

2237 

L89 

LB4066 

1057J2 

U5676 

86246 

105937 

8/5 

835.17 

2a 

186957 

86/87 

52X3 

60/75 

35 

Textiles 06) 

719.90 

+13 

7-90 

2.91 

1466 

839 

71C.45 

72658 

71338 

519.92 

72658 

66 

54L39 

2a 

726 SB 

66/B7 

fc?«+ 

1102/74 

40 

8KE8 STOPS (87)_ 

104659 

+23 

730 

339 

1637 

747 

102163 

103LU 

102864 

78539 

104639 

8/5 

8X539 

sa 

104659 

B6/87 

5868 

60/75 

41 

Ageaties 07) 

1432.94 

+23 

496 

171 

2737 

006 

L4Q354 

L40435 

1139637 

039 

1037 

Z73 

urns 

2a 

1455.97 

273/87 

miJA 

2067 


«wmirak«rn 

1295J2 

+1.7 

753 

334 

1628 

1736 

IZ7654 


19&TM 

88737 

m«i 

25/2 

10B2JH 

2a 

in in 




43 

Conghmeratesni).— ... 

1318.96 

+06 

6.79 

324 

1735 

436 

131161 

131287 

129748 

030 

131396 

86 

ID? 14 

2(1 

2318.96 

86/87 

211214 

2067 





735 




nuo 












47 

Tefttene Nctmris (2) 

113437 

+44 

834 

350 

1654 

L99 

106611 

1113.97 

dip-96 

mis 

123437 

86 

83775 

5/1 

1234J7 

86/87 

517.92 

3002/84 

48 

MiSceHaneods (S) 

137260 

+15 

959 

339 

1249 

16.92 

L35230 

13622 

133964 

100774 

1387.79 

273 

1101-17 

5 a 

13S7.79 

273 67 

6039 

6/7/75 

44 

HMSTUALSttOPlOS. 


+23 

693 

237 


636 





110354 

86 


2a 

DOT 44 

8667 

99X1 13/12/74 

si 

(m & Gas 07) 

286842 

+33 

557 

448 


3656 





205042 

86 


sa 


56/87 

87X3 296/62 

59 

500 SHARE MBOC (381)^ 

1184.71 

+23 

6.73 

331 

1099 

9L0Q 


116243 



1104.71 

86 


2a 


B6/S7 

63X9 

1302/74 

61 

FWAMC»LG8ttWCn71- 

71936 

+14 

— 

434 

— 

927 

709.42 

71131 


61174 1 

71936 

86 

615.75 

za 

71986 

8637 

55X8 1302/74 

62 

Bagfes(B) 

76ZS8 

+1.7 

1850 

491 

735 

1492 

75048 

754.90 

75731 

68134 

765^2 

1&2 

68537 

14/4 

76502 

1B/Z/87 

62X4 1202/74 

65 

(*s/rzace(Ufd C9) 

99124 

+04 

— 

425 

— 

me 

936.96 

99044 

97732 

32G3S 

109733 

243 

536973 

2a 

100733 243/87 

44X8 

20 (75 

66 

HrainBice (Composite) (7). 

53636 

+15 

— 

457 

— 

SM 

522X9 

52950 

527.96 

511.90 

STUBS 

23 

4S652 

2a 

571.05 

2367 

43.95 U/12/74 

67 

fragrance (Bratats) (9)— 

116238 

-HU 

939 

464 

1446 

1942 

1157.73 

116531 

115474 

L20i09 

123171 

16/1 

108971 

14/4 

331527 

12/265 

65X6 1602/74 

68 

Mental Baris Ol) 

37335 

+13 

— 

355 

— 

2.91 

37005 

37031 

36B37 

332.78 

39044 

16/1 

34535 

2a 

39044 

16067 

31X1 

70/75 

69 

Property (46) 

1859.98 

+23 

433 

2.70 

29.91 

4C0 

163938 

104022 

JS6.75 

744.93 

1059.98 

86 

80532 

sa 

1059.93 

8667 

56X1 20/4/65 

70 

Otter FtaKbJ (27) 

47431 

+09 

6.97 

320 

1827 

334 

46932 

46939 

46534 

35079 

47431 

86 

36531 

2a 

474X1 

0667 

33X9 1702/74 

71 

liweriJuentTnats (94) — 

99019 

+L6 

— 

236 


539 

97434 

97206 

96430 

74471 

99246 

273 

86757 

2a 

992X6 

27367 

7U2 1302/74 

81 

Mhdag nraoce (2) 

502.72 

+14 

639 

330 

1930 

149 

49489 

488.70 

489.98 

28938 

582.72 

86 

34136 

2a 

50272 

B667 

6031 

30/9/74 

91 

Overseas Traders 01) — 

98737 

+23 

918 

454 

1335 

1055 

96731 

963-93 

957,01 

wt? rat 

98737 

86 

77876 

2a 

96777 

B667 

1757 

6005 

49 

AUrSMBEMBCXITZQ- 


+23 

— 

324 

— 

074 



M3174 



86 

B3S48 

2a 

106830 

8667 

6L92 1302/74 



Index 

Day's 

Day’s 

Day's 

May 

May 

toy 

May 

April 

Year 











Mo. 

am* 

ȴ> 

Low 

7 

6 

5 

1 

30 











Ff4ilNRWCHIMXf.l 

3ms 

4484 

ZU6J 

mSI 

2877.91 

28865! 

20652 

20685 1 

1m 

16030 

21263 

86 

13701 

14a 

ffxsiCt 

86/87 

586.9 23/7/84 


FIXED INTEREST 


MlfiC 

anas 

Fri 

anr 

8 

Utfs 

% 

Ttes 

MW 

7 

ad *& 
odqr 

adadl 

2987 

ttdate 


MtttHMMNt 








mu 

+/L49 

17532 

040 

us 

2 

505 yean 

147.55 

+074 

14646 


5X9 

3 

Over 15 yews — 

158.12 

+104 

256X0 

— 

5J6 

4 

Irredeemable* — 

X7U0 

+0.99 

169X1 

— 

6X7 

5 

All stocks 

143X1 

+8J2 

M2X2 

(U4 

4X6 

6 


1ZL57 

+050 

228.97 


0X3 

7 

frper SywSmiHH 

U9X1 

+•40 

111» 

— 

117 

8 

All stacks 

119J6 

+AA 

11027 

— 

113 

~9 

PUUtWIltUri*- 

126.98 

+076 


— 

2.95 

10 

mm a 

BJ9 

44140 

•744 

— 

1.99 



AVEBA6E BBSS 
REBWTIM YIELDS 

Fri 

7 

"Dm 

7 

lear 

890 . 
lamsiJ 

198 

m 

Lons 

1 

IriUEmmnt 

Low 5 years. — 

7X0 

7X1 

7.78 

9.70 

2fl 

7X8 

86 

2 

Capons 15 years. 

•53 

8X4 

SX8 

in or 

2a 

853 

8/5 

3 

25 years. 

8X5 

8X5 

8X9 

10X8 

2a 

855 

86 

4 

WecSmn 5 years..- 

839 

838 

8.94 

20X0 

2/1 

839 

8/5 

5 

Coupons 25 years. 

8.74 

8X3 

9X1 

1839 

2a 

8.74 

86 

6 

25 years. 

8.75 

8XS 

9X1 

UU8 

za 

8.75 

86 

7 

High 5 years. — 

838 

8.73 

9.65 

MX4 

2/1 

858 

86 

8 

Coupons 15 yean. 

8X6 

8.97 

931 

1857 

za 

8X6 

■86 

9 

25 yean. 

8.72 

8X2 

9X3 

10X4 

za 

8.72 

86 

10 

Irredeemables.- „ _t 

8X7 

BJ5 

8X4 

10X6 

za 

8X7 

86 

31 

IrioUM 

Inflatin rate 5% Syn... 

248 

2X1 

335 

3.95 

za 

239 

24/3 

12 

Inftetin rate 5% 0ver5yrs... 

3X2 

334 

331 

3X7 

2 a 

330 

6/4 

13 

Inflafn rate 10% 5 ps... 

137 

2X9 

2X7 

257 

16/4 

0X5 

24/3 

14 

fnfiaYnrate20% 0Nr5yii.. 

341 

343 

306 

3.71 

2a 

337 

Z7/3 

15 

Mil 5 yen. 

9X8 

9J5 

10XZ 

1146 

2a 

958 

23/3 

23/3 

16 

Loans IS yean. 

9X8 

9.99 

9.94 

1U0 

za 

9J9 

17 

25 years — 

9.93 

1SX2 

9X7 

1130 

2a 

9X4 

23/3 

18 

PinfranuLe t 

1036 

3049 


1U3 

za 

1036 

8/5 


tOpeAs Mr 209R5; 10 am 2108$; U am 2U7^; Noon 21235; 1 pm 21202; Z pm Z1Z9A' 3 pm 21283; 330 pm 21273; 4 pm 23323. 


31/12/86 

30/13/84 

300383 

33/12/80 

3002/77 

31/12/74 


1134.07 

517.92 

1MU5 

28741 

26L77 

63.75 


Equity seethM or group 

Pra raeas Tr«)m 

Meehan icaJ EnsSncerfaig. — _ 

Indu5triai Group, 

Other Fuianc'ial . — *. 

Food ManufactwinQ 

Food Rnailhig — — 2902/67 

Insurance Broken, 


Enter raefts or pm? Swedate Sasewttie 

ABCteeu 33/12/86 1114.07 

C WbRNB. 

loepoopc wwns » M to. . i N 

Eteraoto 

Other IndostriaJ Materisb 

ntahWinue lwM Prado rti ■■■■ ■, 

OtterSraups - . 

t Flnyidd. A nn of eowtauems banilRte from the Pitfisbet* tte Financial Times, Braden Homo, Cannon SUM, London, EC4, price 15p, by post 32p. 

GOttSimlENT C HAWES: Am Cron) 05) Horuoo Trawl (29) Sacdard Securities C69) aod Ciwi House (6) /wall been deleted and replaced by Surges troop (4) 

British Benzol (6) and Laamue Waderi (3). 


Base date Base value 

EqnNy section or grasp 

Base date Base value 

3102/74 

300X0 

Mining Finance 

- 2902*7 

100X0 

3102/71 

15354 

All Otter 

. 10*4*2 

100*0 

3202/70 

128X0 

British Government 

. 3102/75 

100X0 

5302/70 

329X6 

Do. Index-United 

.. 30*462 

1DOX0 

290267 

11403 


.. 3102/77 

100X0 

2902*7 

134J3 

Preference 

- 3102/77 

76.72 

2902*7 

96X7 

FT-SE 100 Index 

- 30/12/83 

1000X0 


i 




Financial Times Saturday May 9 1957 


WORLD MARKETS 


FT-ACTUARIES WORLD INDICES 


Jointly compiled by the Financial Times, Goldman, Sachs & Co., and Wood Mackenzie & Co. 
Ltd., in conjunction with the Institute of Actuaries and the Faculty of Actuaries 



AUTHORISED 
UNIT TRUSTS 


SrW|c Fa*d H»jm (aXe) 

20, Cooctofl Jwn, Lenta, EC2R TP A. 01*568 MM 


Mr -+vr YM 


Abker Volt Tot Uws. U) 

BOH /ttUl-i gftlBn v™m i« vfll 


iMt mf l 

hte 


rr 77j Sea 

nu attLw — 

— IS? ’Si =_ is 

t*uin« Prorata 8 WMA ** 1 



NATIONAL AND 
RE6I0NAL MARKETS 

Figures In parentheses 
show number of stocks 
per grouping 

Australia 194) 

Austria <161 _. 

Belgium <471 

Canada 031) 

Denmark C39) 

France 0221 

West Germany (901 

Hong Kong (45) 

Ireland 04) 

Italy (76) 

Japan (458 J 

Malaysia (36) 

Mexico 04) 

Netherland 138) 

New Zealand (27) 

Norway (24) 

Singapore (27) 

South Africa CbD 

Spain (43> 

Sweden (331 

Switzerland (51) 

United Kingdom (3391 

USA 1597) 

Europe (932) — . 

Pacific Basin (637) 

Euro- Pacific ( 1619 ) 

North America (728) 

World Ex. US 0825) 

World Ex. UK (2083). — 
World Ex. So. Af. 12361)-. 
World Ex. Japan (1964) ... 

The World Index (2422) „ 


ase value: Dec 31. 19S6 «■ 100 

Copyrigfa, The Financial Times. Gottnan, Sachs & Co. Wood Mackenzie & Co. ltd. 1907 
Latest ortas imavaSaato tor tins nfiuon. 



THURSDAY MAY 7 1967 

WEDNESDAY MAY 6 1987 

DOLLAR IND 

3C 

US 

Days 

Pound 

Local 

Gross 

US 

Pound 

Local 



Year 

Dollar 

Charge 

Sterling 

Currency 

Div. 

Dollar 

Sterling 

Currency 

1987 

1 ® 

ago 

Index 

% 

Index 

Index 

Yield 

Index 

Index 

Index 

High 

Un 

Cdpprox) 

135 i>9 
92.15 

+23 

-0.7 

11978 

8134 

12625 

85.05 

277 

221 

13261 

9280 

11668 

8165 

124.10 

85.43 

13569 

10162 

99.92 

9130 

9660 

9235 

120.53 

+03 

106.40 

11057 

431 

119.% 

10555 

10961 

12235 

96.19 

tom 

129 *2 

+0.9 

114.43 

125.45 

232 

128.42 

112-99 

12432 

13637 

100.00 

W2T 

11734 

+ 0-2 

10338 

106.81 

238 

11733 

103.06 

106.02 

12430 

9838 

10337 

1 Z 1 B 2 

+L0 

30734 

U3.61 

2-43 

12066 

106.17 

11239 

121.82 

9839 

9549 

95.42 

-0.4 

8424 

8338 

233 

95.83 

8431 

8830 

10033 

8400 

9036 

106.46 

+ 0.0 

93-98 

10666 

3-OS 

106.47 

9368 

106.71 

114.71 

9639 

74.46 

127.24 

-0.7 

11232 

11924 

339 

12014 

11275 

119.62 

13L44 

9930 

94.43 

103.83 

- 0 £ 

96.07 

103-96 

139 

109.71 

9633 

103.97 

112.11 

94.76 

9661 

158.89 

+0.9 

14026 

139.95 

0-47 

157.49 

13857 

13833 

15839 

100 OO 

7662 

15235 

-02 

134.49 

144 84 

261 

15266 

13432 

144.99 

15535 

9634 

6765 

19727 

+9.4 

17434 

259.69 

023 

18026 

15861 

23631 

19737 

99.72 

5065 

11 7 JDS 

+03 

10336 

107.14 

436 

11636 

10220 

20537 

11834 

9965 

8663 

94.97 

-0.4 

8333 

88.01 

366 

95.39 

83-93 

8736 

10039 

83.93 

70.04 

127.96 

+ 2-2 

11296 

115.41 

239 

12524 

11039 

112.32 

13939 

10060 

9832 

126.93 

-0.4 

11 7 05 

124.12 

1-90 

127.47 

lip 15 

12433 

127/47 

9929 

5838 

176ir7 

+03 

155.96 

120.70 

331 

176.49 

15529 

12033 

186.74 

100 DO 

9201 

103.95 

-22. 

9177 

9837 

439 

10625 

93.49 

99.81 

12131 

100.00 

8964 

124D2 

-05 

109.48 

11434 

2.03 

12468 

109.70 

11452 

12468 

9035 

8861 

99.95 

+03 

8823 

9047 

1.91 

99.37 

8737 

9030 

10406 

9326 

8639 

139.41 

-0.7 

123-06 

123.06 

338 

14036 

12330 

12330 

14036 

9965 

9934 

120.75 

-03 

106-60 

120.75 

2.99 

123-07 

10632 

12137 

12406 

10000 

9963 

119.63 

-03 

10560 

10835 

291 

120.04 

10562 

10831 

12004 

99.78 i 

9437 

156.05 

+0.9 

137.76 

13824 

061 

15466 

236.08 

13632 

15605 

100.00 

7735 

14L52 

+05 

124.93 

126.41 

139 

14065 

123-93 

12534 

14132 

100.00 

8432 

171 r> 

-02 

107.01 

121.02 

2 % 

121.46 

10636 

191 96 

12460 

100.00 

9962 

14131 

+03 

124.92 

129.91 

1.44 

140.82 

123.90 

12931 

14131 

100.00 

8461 

132.81 

+03 

11724 

12463 

3-85 

13239 

116.49 

12430 

13231 

100.00 

8964 

133-12 

+02 

117.51 

124.47 

L98 

13281 

11636 

124.02 

23332 

100.00 

90.46 

171 ?a 
13339 

-02 

+02 

107.06 

117.75 

116.72 

124.47 

294 

3-99 

12130 

13309 

106.90 

11730 

116.73 

124.02 

171.50 

13339 

100.00 

100.00 

9731 

90.47 


Tnt Mi ii in UA— *M I 

witotli tnm 


Aro-taSta* 1*62 

tunricii ru 

SSSniSlrziS* 

tm 171.0 


UHOnw a JcsUag. — ZU 
ua.Esero’iCa'i S* « 


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F A C Uatt MaaWWt 

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fie rSSt&Sll Jxr cj8 
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♦Ml 049 
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*01 Si Jofcn St Lenta EC 1 V *Q£ 

fssrjgr^=Si % SA 

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♦a^ 0.41 
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Brycowt Uaft Tmt Mgmt LtdMUX*) 

HvWfthHs*. norouanSa W1HDJB . 01-933*382 
mmcmi- 1 -M 69 in.*** .. -T in 

Bn clrwiwtm Management Ca Ltd (a) (c) 
TrvtackErtmc.bBeamEC2P2.IT 01-588 28M 

Mmftltol (Ml 602 200 

UCOD uaau 9tjr5 664 bflj — zoo 

jrt*IK W *T— IlgSk 318.7 1^7 

«g *»Nillei *8*0 51X2 L*7 

vmc M*| 6 131.4 1361 . 6*1 

lkuaUaDIUnb_.. 7*CZ Z51 * _.. 6*1 

lnnro dv««?5 1*64 1363 — Un 

Ucora UimJ U» 3 1962 337 A .. 107 

SrebrCnvift ni 92 *0.1 15S 

Ucw(MiiU»B «o 10l3 «a« US 


FS IsrestsMst M anu t re Ltd 
190 Writ Ceww 3L Su»9o» 

arnncanSra tK.-- -2* 23 f _ 

^gSSasC^S §3 Ss 8 

SSSSift 8 ^=fi* is 

PnlAfrdil 1 - IWj 1 BliA* ***' w 


FUeHty Investment ServtcM Ltd 
RHer wrtc Terervtoe 7*19 1DY 

MKMW.UMn 080O_».4»Bl. 


•04 5 HI 

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♦jaz*o% 

*£bzm% 


ARM Omhar UnN Tracts PtX («Xfl) 

asms Data Cave, Swnta, SKI 1EL 

IOT3S 22291. Putas (0791)610364 


BASE LENDING RATES 


Serfs 

GOLD C 

5400 

V0(. 

45 

Lost 

55 

Vo 1. 

Lost 

Vo(. 

LA9 

Stock 

S455J0 

GOLD C 

5420 

52 

37 

16 

4330 

34 

59 



5400 

94 

1560 

35 

36 

6 

48 

H 

gold c 

S460 

90 

280 

22 

26B 



m 


5480 

lb4 

0.50 

13 

1640 

10 

Z7 


GOLOC 

5500 

— 


161 

1030 

3 

2030 

n 

GOLD C 

5520 









15 

16 


GOLD P 

S400 

— 

— 

10 

430 




GOLD P 

5440 

58 

120 

7 

13 

~ 1 ~. 

a 

SILVER C 
SILVER C 

5700 

5850 

30 

203 

140 " 
85 

*7 

91 



S82S 

SILVER C 

5900 

4 

55 

21 

90 

-TO 

_ 


E/FI C 

FL335 

13 

4.40B 




10 

720 

FL338-2D 

E/FI C 

FI J40 

12 

2.40 








£/Fl C 

FI 345 

— 

— 

16 

220 

— 

— 



26 0.70 

3 3A 


12 3£0B 

189 1.9S 

15 0.50 

15 0.90 

27 230 

16 5J0A 

30 43A 


25 SB 

17 Z.70 

5 LSOB 

10 2 


— 

— 

10 

10 

12 

11 

14 

6 

38 

760 

63 

8.40 

10 

no 

230 

534 

17 

5.70 

430 

50 

35 

fa 

430 


ABN C 0320 116 850 

ABN P FI. WO 45 8.10 

AEGON C FI.90 82 3-90 

AEGON P FI .90 40 4J0 

AHOLD C FI-115 43 L2D 

AHOLO P F1J.05 59 120 

AKZO C FU40 513 2JtQ 

AKZO P FI .130 296 330 

AMEV C FL70 116 1 

AMEV P 060 ID 150A 

AMRO C 060 18* 2-1 OB 

AMRO P Fire 44 230A 

ELSEVIER C 050 60 3B 

ELSEVIER P FL46 40 050 

GIST-BROC C FL45 26B 160 

G1ST-BROC P FL«5 57 330 

HEINEKEN C OJ80 77 6 

HEINKEN P FU70 3 1.90 

H00G0VENS C OAO 3*0 330 

HOOGOVENS P a 40 361 2.70 

KLM C R45 2172 240 

KUM P 0.45 650 230 

NED. LLOYD C FU80 33 050 

ned. Lloyd p fuso 42 12708 

NAT. NED. C 0.70 136 4 

NAT. NED. P 0.70 138 2J0 

PHILIPS C 055 701 130 

PHILIPS P 050 242 L90 

ROYAL DUTCH C 0250 2777 6.70 

ROYAL DUTCH P 0220 1353 120 

UNILEVER C F1620 523 950 

UNILEVER P 0580 251 1550 

TOTAL VOLUME IN CONTRACTS: 44,056 

A-A* B-BM 


FI.520 

116 

8.50 

... 

rnrav 

- 

__ 

F493.00 

F1.48Q 

45 

830 

25 

ISO 


_ 


FI.90 

82 

3.90 

50 

6 

2 

7 

FL9060 

FI.90 

40 

430 






FI 315 

43 

1 TO 

1 

230 

_ 


FU06.40 

FI 305 

59 

320 



_m 




FU40 

513 

260 

325 

ATft 

31 

9 

FU3280 

FI 330 

296 

330 

74 

5 

31 

6 

** 

FL70 

116 

1 

5 

2 



FI-63.00 

FI 60 

ID 

160A 

120 

3 

_ 



* 

FI 60 

184 

23 OB 

10 

4A 

10 

530 

FL76.0Q 

FL75 

44 

2.3QA 

167 

360 



H 

R30 

60 

3B 

— 

— 

12 

730 

FI 3160 

FL46 

40 

050 








FL45 

26H 

160 

15 

3 

5 

360 

F1.4420 

FL45 

57 

330 

181 

430 

3 

5 


FI -180 
FU70 

77 

6 

5 

8.90 



FI 37920 

3 

1.90 

18 

3-608 

— m 

— 


FI 40 

IS 

330 

19 

430 

82 

560 

FL4L40 

FI 40 

2.70 

168 

4 

6 

4.90 


FL45 

2172 

240 

171 

330 

18 

430 

FL4460 

R.45 

FU80 

656 

33 

230 

030 

70 

4 

2B 

460 

FU46 

FI 350 

42 

12708 

12 

1630 

— 

— 


F1.70 

136 

4 

88 

520 

20 

7 

FL70.60 

0.70 

138 

210 

63 

330 

27 

430 


FI 35 

701 

130 

522 

230 

107 

3.40 

FL5030 

R30 

242 

L90 

68 

270B 

24 

330 


FI 250 

2777 

6.70 

846 

830 

162 

1230 

FI 254 -00 

FI 220 

1353 

120 

165 

3 




FL620 

523 

930 

145 

2030 

33 

26 

FL59760 

FI380 

251 

1530 

19 

1930 





ABNBrt Vz 

Adn&CoRpaBy 9^ 

MMArdiBklU 9b 

ADMOaobr&Co 9b 

AJIed Irtah Bade 9b 

AaseaaEzp.Bc 9b 

Am Bart 9b 

NavyAotachs 9b 

ANZ flankisg Group 9b 

Associates Cap Cwp 9 

Autburfty&GDUri 10 

BacodeBffHO 9b 

Bart HapuCni 9b 

8art Lean (UK) 9b 

Bart Credit & Cam 9b 

Baikal Crib 9b 

Bankaf Ireianrt 9b 

Bakdlnb 9b 

BartdScxtxd 9b 

Bmp* Beige US 9b 

tattoo Bari. 9b 

EacMartTaLtd 9b 

BeseftiaJTnaLfd 11 

Balms Btrt AG 9b 

Brit Biol Mid East 9b 

• Brain Shipley 9b 

BrtussHtgeTtf — — 9b 

CLBaANedertaod 9 

CndaPerm* 9b 

CayzerlM 9b 


• CtarartaseBet — 9b 

CSSs* HA 9b 

Otitnk Snt» 5 s 0245 

GtyVerttag&Bart — 9b 

DjdndaieBart 9b 

Ccon.BLN.Eaa 9b 

CcscwxedCred— 9>a 

&wper«neB®k *Vj 

CjpneP^sivBk Vj 

fern Lame—— 9 

LT.Tna 11 

EquiYI TstC'p pic 9b 

EzeterTMlti 10 

Raeoal&Gea.S<c — 9b 

Fire to. Fi*. top 10b 

Fire to. Set US 10b 

• BctetFiswg&CB 9b 

Robert Fraar& Pin 10b 

Grata* 9b 

GndtyiBiPk__ Wi 

• GumcaMalna 

HFCTrastlSarwgi — 9b 

• KantreBak 9b 

MSt l6en.T5L 9b 

• HilSusei $9b 

CHowiCo 9b 

Hogtag&Stagi V t 

UmdsBart 9b 

MaseWespacUd. 9b 

HrgnjiSosLkl — 9b 


(TdWBart 9 

• NorgaaGmfefl 9b 

tte to* Core Ltd — 9b 

IttBtofKuni! 9b 

ilafltetnWer 9 

(totfceo Bart Lid 9b 

t NanrtbtoiTns 19b 

PK Fives. IrtKUlO ID 

ProwalTmiLai 11 

2Raprtd&S« 9b 

Rotbarghe E'rznue 10b 

Royal BkofSoUsd 9b 

RqalTnrtBa* 9b 

Sodtfc & UMfflsao Secs 9b 

SBfldarCCrtrured 9 

Trastee Sarla? Brt 9 

UDT Mortgage Etp nil 

UretedBkof Kzreait 9 

Dated MaiaH Bart — 9 

UatjTrnflPLC 9b 

ttedpac Bart, top 9b 

MTfterayLaaSm 10 

TortohitBart 9b 

• MesVen of the A c cepting 
H cases Comnlttee. * 7-day 
deposits 465%. Savretse 764%. 
Top Tier— £2500+ at 3 months' 
notice 958%. At call rtien 
£ 10000 + remains deposited. 
tC*\ depos i ts £2000 and over • 
5V* gross. 1 Mortgage base rate. 
t Demand deposit 465%. 
Mortgage 1125%. 



CCL UnR Trests Unrited 

74. Shtohtrdi Sta4 Green. LOo, Wt2 BSD 01-7*07070 

S 5 ST 5 i!r==E S 9 3 : 

CS Fbnd Mangers Limited 

125 High Hdbers. Lortoe tVQV 6PY 0-2*21148 

CSAstnaN — Jmu kZXrt _ j OHO 

gnaraiMPM Mi u? 4CM US 

B4n.r «i nn< 1173) +T3 6*3 

u nrmTilL mIZjhb *o 3 *d3 uzt 

Canada Uft UnK Trust Mngre. Ud 

2-4 18* Si Potters 8ar. Hens ^ 0707SU22 

CmtnOs I U 6 Z 15LM +U1 2-10 

QaC«.4aiZZZtoac 2*23 * 2 iJ 270 

Do. team* dm. TOT 10233 +LN **0 

hlt lm - ” >w« 214/J *ZH) 640 

Btl Frt. bL rimuZMJ *I« *6*1 — 

Canton Fond Managers Ltd 
1 Ofcnrte Wap, Wembley, HA9 ONB 
01-4028876. Deeto* 0800 2826a 

Cnnwk (3610 3811 -16 25* 

Iron . *162 WU -62 iX3 

FVE*a 174J 2462n *53 D 21 

134.4 ibiJ* *aa as* 

Ota S2.9 S5.4 •53 061 

UTOPK* H.9 592 +aS 640 

re* 74 4 *171 030 

wo toi+vy B—l .1*73 SON . . J 640 

Cape) (James) Mngt Ltd 

PQ Bin S5L 6. Beeh, Marti EC3A (0621 0(01 


C«gptiHTnmill *^^i50.7 +<*». . “ 

£Si F cSrSv-rer 267 *s? 

S2»aTJtSTu_-, J2J.T j|l3 -OH s»0 

ta»tatataoiZ!2s*2 ,SJ 2 TVS " 

JovTmiii _J16l « 17JN *• ^ - 

MoonSto-i* ut__]i5\s ih« *oj 

Max. lac Ca n. (X) — 1104 J 116« *03{ *j» 

PrtrnvfcwkTuul.-Rij *aN lg{ 

SnSatairl -1^2*24 J5?d *IS ora 


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luiivM 3MJ 

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44 TW *0* S3* 

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DIM ML I ** 

JZC S ►> t It 41 

■w*, -at iu 

101 .** -.* 

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Hflifim Unit Trait Managers Ltd 
* 17 PemM ltd. HbISAtollHert. w S<nt*4 
DM4 412265 . , . ... 

[M>tk**riai HLJd i ~ 

pjmnam.enf4iK.--.ow> ■*!* - 


Robert Ftmhrg rt Ca Ud 

2S CoodaU Aae. Lnrtoa EC2R 7DR . 01638MP8 

TAmtnwoLUBt JUTTH7 — I 

TCvroMEtatlSAl— SUM Irtta - I 2*7 

tUo Ettna rV3) 46335 02 S*MI - I 

Ttv* Pro Trml I2V3I-J 
tPrspTrVB 12507 — H IX426 

fU*tt*m«0 


Hexagon Services ltd 

28 WMrevro Bd. Roreoffl RMt 3l» 

W Fdm iWl nOBT| 

cSKwfnie-.- -w » v; ." 


d «■*«.*; 

. : e*i 


tOghcRffc UnR Trust RtagmertUrtW 
6V>h^5L IfmMW.Rare SD*t 0*W ■ 12M 

HrteWhMitaO.- C 5 A - * • ** 


M«t.M 
(TieaE.ro. 
T«MM« Til 
URSHUU ta 


roomie E*. To. 
Fa tat Ex-1 
SnoKfr Co-Ex 
ILSJLCxTA 


Anthony WUtr Unit Tst MfntL Ltd 
19WtoegmrSt.LoMonE17HP at-3771tn0 

Wire*IMiRLI*c IHI3 UUf _ .( 065 

Du tom 15U 16*3 065 

Wirier Duty lot Fa MU 6*3 _U — 


125 reasons for contacting 


financial 


Archway Dnft Tst Mgs. LbfrXc) 

21 ScoSlrrri. LaMOO ECZSi 2tJP 070845322 

U -3 S 

ttaYaHEro^FA—jab* S3 J 655 


Arkwright Mamgamant 

1 UofSlItaxtwaer M6D3AH ^ Obl-8342332 
•ftsmfHPdtoaS 1962 442*1 I 0.99 


And IWt Trust Mngn Ltd 

PTrilo Use. FeodsRb Si Lartn EO 
CudFrilleL . n06H 11271 
lanHMKpS-— UU 115.9 


AHmria Unit Managers Ltd 
UerfcW&af.2UA3l.laadoo5E12BD 01-2321415 

w Vm Frn 94X> load -fOS 1-61 

Alima OcaB 9A.9 103-1 *22 271 

toullM 1250 1M< «2S 271 

ASmtltt>W Ikott 1962 1036 •06 8-38 

AdMlFaaTtt I122H 1321 +02 25* 

ItalMs 1861 19TJ • +0.4 254 

AdmaUKGiasifc 273 29.1 287 

AdMaWAi)LFd_l5U 626 +06 (UD 


BaBfie Clfhrd A Ce Ltd 

3GksfWasSl 
WlExlU+Tb 
JrenEe*riiri 


Cant Bd. et Fkt. of Ckarch at Engtoidtt 
2 Fa* Street. Loean EOT SAR □ 1-588 1KL5 

torFtaOartX— — J *89*5 _ J 386 

FMIriSraXertljollJ 15U0 J +.43 

Dm Fa Hasan _J 1000 l J UU» 

Charincn/Ctofatarett 

33 Xing WUtaa Street EC* , 01-638 5678 

CXirtncO Me M*, 6 __J 1828 1 J 901 

OataoAKltoiZrj 597.7 | . ..[ 901 

Oum»aelBc*r6_3 1263 | J 336 

OuritaeA(El%6ZJ 1270 I __J 326 

Charities Official Invest Fandtt 
2 Fore Street. Loadorr EC2V 5AQ (D-5B81B15 

hw*=*>Ari»30 | *55.09 .... 1 439 

Atari Agd 10 1 138137 I __J — 

Ckasa Manhattan Fund Mngrs Ud 
7373.B»ogtaHSLLata£CZV50P. 01-6066622 

■ 5 SKS=s 3 s S 3 3 “ 

Clerical Medical Unit Ttost Btarngm Ltd 
NuRMPIwiBrlttolBStaLlH ( 08001 373393 

American CTO**. gS2 2U] 1.9 

SST. 

faro 

Ceeerel . , 

UUFriH 
MAFrtlri 

tszzzu 

Sven nta— 

CenemrcUt Union Treat Managere 

S. KeleaX 1 Urtenbafl EC3P3DQ 
petal 01-486 9BU 

CU UK A Scecni 1606 6* 4 + 0 Hl 230 

DeAoro I Wt U-U 257 

CUtncaae ... tU lfc 6*4 +A3 3H5 

Op Atom -h96 63.4 ... . 3.72 

CUWDrMd*SomS)a^45 58. (J +OA 132 

DeAccoa £« 57 A — J 136 

ConfedenBon Fttnds Mngt Ud (a) 

50 Chancery Lme, WC2A 1HE . 01-2*2 0ZH2 

fr y nrm .... . Dia fl J2UT — T 339 

CnreMi UnR Trust Maps Ud 

P0tal3&BedretanKa*SR34XR. tfl-IM96n 

E&aae= £2 9 3 % 


FramHngtsn Gimp (*) 

3 London WNIBkbi EC2M 3NQ 

Arim.AOri 77059 717 . 

Ucanuntr) 210 * m> 

nn rmwnd S04A isi 

inonimii sit * 301 

Cmtal Tnrit 281.9 796. 

(Anna Omul J+»B »*J 

cmntuicn — 1063 HI 1 

(Atom UWHI 1**3 X' 

Lmnmft 675 Tl- 

(Actum. Ur* tsJ 673 71 

CnrrlBcereTtoB 237 276. 

UcomUntO 2*57 2601 

FUanriFriri 5*1 57. 

lAcnraUmnl Ml 51; 

IrievtAGroneaTn..— 1605 UWI 

ucamuwto — inn Ml 

l-AlnMrihFA— - 16*2 17+J 

(Acori, unm - - 1874 1981 

JWriAGmft 1125 1191 

lAamsUmU >1117 Ut>- 

M ta**l*Wri»Fa 1167 US** 

PEPM 57.7. UJ 


BmororTniu Jl91A 202.71 

UUnUmJ JfflUl 221.11 


■a: - 

*04 12? 
*©« 122 
• 12 >7( 
+13 171 
. A« 
448 
-Oil Off! 

ttl 083 
+DJ 157 
+C3t 157 
+ 0 J 108 
+03 1GB 
+14 Ml 
+ 13 34* 
•a* — 

+04 — 

♦ 1 * — 
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+07 35D 
+10 JM 
*22 0*6 
+Z3t 096 


HtU Sxmori iMt Tst (aXt> . 

NLA To+W Adfflri3nt» Rt4* Cn+ta 01 6H 4M5 
in? 0 tra-H r-id #**6 -*• cS 

(biCriBrirnm ;is;r «■'•*! j-J 

(Piunroftw .f«9 SMfS ^9 ii 

ceil joerm Tnre . - J**? .»* “*ri- . 7* 

uirvM - - • -1*13 icii^ vv*- t to 

UliF*nw<Tnnl J 471 *091 ij 


UiUiriimix - is* l 
n» Ho* ?+» (« . - - **■? 

(bnicaw 7iw -L.*98 

H-nt‘trm( .. - ]14l B 

teitam race th - ■'”2 


ll? si *o* i»r 

_. m . .. . _ lMi * 0 “ Lr» 

teltairi T«e T« -7? 2 F5 

latKjL Pnvcti Tu- J«J >'» 

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S>vSS*CaiTii- _.n?7 9 L«‘J *0> I JJ 

IWSKCHiru -127 1 1**K +0.. »4t 

<V>U5anjBcr Ca- - -15 1 it.i MS' e« 

Ilf Fund Managers Ud M 

32 Qnetir Pimp's 6*tr. LortnnSWSN «AB 0l«2 'MOO 
lUBMAffw* .. -!'*7 7 Ml o ->)*) 

IBI Iri VlritK *711 7f*<d i *■) 

mi in Iw «70 Tl; m ?M 

ruCmtaTn (U 7lM _! u* 

Kay Fund Managers Ud (aXb) 
SSFuBritamSlMaactiMtai M22AI' _ SLKJJWJtM 

Kar (wty A Cn +lft 1*J 

Rcr'aereFtre {to* reit *Ci «i* 

KirC-IIArMPOM . ft 77 77 1, , +9? 

RaHtarlecFd. — D*«* )*0- +l'k »« 

Kevtmra.-. -163.4 6fl +4 •Uf I0> 

Fir KUmri Imea UaM MeHrri ere l+criatH* M+e* 
Ca U* 

LAS UnK Tmt Manatm Ltd 

g3Grw«>Si.E<Snepr<d<EH23A 0M-???*«)8 

LA&lrildf+irditm „■*!+ *63ri +1 6 088 

LAS **nh CncofPp tn _»L4 6*V *0 K **? 

LAS 1 4HHIU* c«*lr ]aG 7 tsrt rdl Dli? 

LASUKtrotrTri .Vl 5+Jril +o5 1*4 

LASJriln. . -BIT M« *0« COO 

LASEiaeotrii .Ml* -ill 3*0 


Robert Fraser Tmt Mgt Ltd 

29 Atmraarie SL Lemon Wt 01-4933ZU 

OBL Fr9MrCa*m.T« J163.4 173* .. -I LOO 


Friends Provident Unit TretslaKtXcX*) 
Caalc Sum, SefiUmry, wins, TeL- 0722 3362*2 

F.P. Earn Out. J253.9 264*1 +ZN 239 

OxA^X +583 +*l 227 

F.P.n*Pfll«DfU. — □lioi 127 7 V +!■ 825 

Dsto» ZS«62 155-1 +18 &25 

FP 56BMf«taD«— H297 2*31 +3-1 U9 

D+Accnm T7Ej94 25** +3J 114 

f P. nvtri An+rrov. - J1242 136 * +02 133 

F.P. PxlAc Brim bi «* 227 jl +L8 022 



Funds In Caret* 


561 +OJ U 

_Sl +03 19 

27.7« *OA 78 

26.4a +03 *8 

46? +11 00 

3*0 +02 IB 

369 __J 13 


o. & A. frost (a) (g) 


LAC UnK Tmt Management Ltd 
Piercy Hone, CaptaflAve. ECSft 7BE 015882800 

ItCMhH. . - ,5772 M9rt +104 +(W 
LAC Ultra re JJ95* 901*1 +89 12? 

Laarenthn UnK Tst Mngnmt Ltd 
16 Buckwgnam G+re, Luadoi Swi 0142B6I15 

'J™ Cri-thTma £*79 15*71 +1 *j 0*1 

i nent wn * -pl.r 753. +1 H 11 o 

TenTMl _.,Jw.O “ ■' 


6*21 +0 ll 05* 



Cennty Urtt Trust Mreagrr 
161 CbeepsMe. lendenECW 6EU 


GT Unit Kaaafen Ltd 

Bill Floor, 8 Devonshire Sa Loreto* ECZM *YJ 

01-2852575 OetaK 01-626 9«1 

CmmlUxl 1346 1*12 +L2 2.1 

(•Ulial MU 2D>? +L7 21 

lorane 1B2.9 U»J *13 5J 

PevpraCaraac 2*00 250-1 +2.1 13 

•rimudarif 1899 201.' +03 03 

US + 6 —iri , 5*3 6U» +02 0 7 

AaartaSeeOalSitS^ 769 81 .4x +02 03 

tariAGevcrt 3069 3259+ +BU 61 

FriCMMCcw 16*3 1761 +17 U 

U ll ri 2600 2763 +06 Ol 

fv ta*. . — , — ^ 65* . . M2 • . +O0 18 

wri torom R__ . jjaj 6o3 +4131 42 


totMR Fond Managers (a) (cXl) 

2 Si May A**. London EC3A88P 01-6251212 


Lizard Brothers & Ca Ud 

21 MaarfMH London EC2P2HT 01 5882721 

OK Fra* 

CAbM. — 1771* 2906] +2d 223 

Imlbadl .12713 .Mai *2J< 117 

SSri^Grt^ulIJlTOJ +L« 147 

■0.15 100 
+2 9 i in 
-0? 100 


voeodm xg 

■N Aroftn.TB.lV21 3J 8rt 


UXFMMAo-27 1198- 1Z13 •„. 81 

U6 E?Sli ly Am 27 - 2170 237! 2* 

5»ril Cover* Apr 27 39 72 A29C 1* 

RMooiAprU 2960 2413 ... 08 

MriPn roUAarlO-.. 1*80 1720 .. 11 

Nina WM Apr U 182.0 147 ji ... 0.9 


























































































Financial Times Saturday May 9 1987 



*5 fSSSKSH * Sij Si- . <8 .I,g «.si £ 
















































































LONDON SHARE SERVICE 


FOREIGN BONDS & RAILS— Contd 


fhtt !+ tt »t %\ M. 
£ I - Eras i TitU 

«4 . . 150 I fBJ3 

*»L... 3 I 163? 

« 1 2 ‘KJ6 

Mai . 2.75 ! 546 
WWjffit+JJ, 15.00 1 4U0 

IWnLl'i 1450 10.49 
U3V+m 9.75 920 
« I. — — 








































































Financial Times Saturday May 9 1287 


LONDON SHARE SERVICE 



































































































































































































Financial Times Saturday May 9 1987 




285 

■1 

20 



to 

■rti he 
4D 118 
3,9 - 
43 — 
46 — 

<u — 

17 5.4 UJ 
20 46 140 
20 <2 14.9 
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13 — 
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18 - 
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33 52 
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19 U 206 
15 1 14 6U 


£0 3.9072 
4UU2.9| — 
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U UBU 
68 1 D2(2L0 
32 33 042 

* Uj* 

32 92 UJ 

22 4.9 132 
51 19 10.9 
18 42 18.4 

23 1 3.9 152 
21 33 117 



43 12 24.4 
12 23 419 
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22 27 19J 
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0.9 315 
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42 U 302 
32 19 23.9 

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23 32 225 
3.7 17 222 
22 12 328 

24 2D 251 
t 4.4 * 
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53 0.9 292 

♦ 04 * 

22 23 1231 

23 23 252 
3D 25 17.7 

43 13 243 


175 (111 

Sill 

37 


C*wlCrtl«E 
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0.9 60 ».2 
42 21 126 
36 24 119 

28 3D 152 
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42 20 86 

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29 46 9J 

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14 24 155 

- - 115 
29 3D 143 
ID 3D 246 
33 31 123 
19 62 118 

52 15 111 

• 2.9 9 
32 15 266 
114 07 121 
6.9 14 106 

14 6.7 110 
22 41 154 

- - 73 
19 19 171 
74 111174 

15 42 
25 32 
21 32 

53 56 
42 17 
21 4.9 

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lfaO 
108 
87 
268 
535 
176 1 13b 
123 I 79 
135 
225 



MSftn.403 


413 
31 
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495 
105 -12 
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127 

187 *7 
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46 126 
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2J 29 166 

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22 1206 

• 43 L* 

3D 35 13-4 

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51 16 146 
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323 1150 west Ran) 


Eastern Rand 



Ojy 750 pt-HrteraRl 
825 1455 lumsri 


300 
200 
200 
550 

£12 Wi 
756 l-25t 


. .. 05 5c 6 32 

♦2 t245 15 34 

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— Australians 

— 100 45 (fttom Securities 20c J BO 

— 19 12 WAIrO-WeM 20C 14 

6 395 245 HMCMSOe — 308 

85 44 |9AquaHos EiBbi NL— 52 

1D>2 7 #Asu Oil i Mineral] - B 

40 IDljWttlralisMnsH.I 37 

125 65 TWwtwiwe! Res. NL _ 125 

44 15 WteeeEepta. 44 

33 lb WBatnwalRH 3b 

307 200 aBarraCk Mines. 203 

9j 3iilWrigra«ilteaxm2. 5 

131 111 19 Bord Goran... 118 

712 128 WBauvmiHJrlKina.. 212 

120 59 WBrwsvdckSL. 95 

■473 282 WCRA52 473 

136 62 hPCarrBnyd2Dc. — J 109 

49 22iJ9Cenmi PacHie— ™| 41 

25 13 pCaKGWUgAnsHlIL Zfe 

38 22 |9CallusRifsNLS2 — 23 

6>2 4 WEjqle Corn 10c bi 2 

24 lb foEaswn lined 20 

224 125 WEesuietZOc 215 

177 59 Elders Resources 149 

478 267 iVLnvrrur Minn 425 

34 iStilf Endeavour 2fie — _ 33 

148 42i2j9£mm]»s#bU 103 

300 83 WtwwttliL 300 


3JJ 

15^ 16175 
Q430d « 10.9 
019M 15 1 76 


Diamond and Platinum 

£95 £52 Anglo Am. Ira. 50e_~ mmst-2 TOSlDd LO 26 

865 512 De Bm*Df.5c 741 -13 QB0d26 3.4 

475 300 Dd.40acPI.R5 «S -12 0200d ■ 14i> 

OW, 740 liqUb Phi. 20c.— 962 -9 tQ135cl 25 4.4 

860 570 LadedwiqUls- 825 QlOcd ID 3.9 

m 688 Iru. Plat. 20c — _~J £10 fQ135d 16 I 45 


Central African 

295 1170 falcon Z50c — 295 1 — Q60d 6 85 

28 15 WanUe Cd. Z51 2baf QlZ5d * 14.1 

16 I 7 tZamCor5BIXL24— 1 12 L I -I ~ I - 


Finance 

125 63 lAlex Carp US 5150 125 

r £5 Sng. Am. Coil 50c — £7>. 

06141900 fangto Amer. 10c £14? 

C747J WH-jAiig. Am. Gold R] £69* 

£55 £29 >nglo*aiil 50c £52 

OTz 21 HOogsu Gelfl lOp 261 

130 90 wcae Afei Cmp USSI . 107 

OOV 668 Eons. Gold Fleto 978 

02 775 EeSeiRl £UJ 

02H 067 Cencor40c £U>, 

36 25 EaU & Base lZ>g > — 35 

6L5% 875 SJl 5c — £141, 

012 04 Llo'buig Cm. R2 £108 

06V 00 EMkldJtWItZSc £151; 

860 560 Ninorco SBDL40 729* 

730 408 New WiisSOe 668 

£30V 09MjFSlmrilc £271 

ID 4 |Rand Lonowi 15c__. U 

08V 01 HaodMmesin DW 

587 300 RanflMm.Proos.Rl_ 587 

70 30 kwh?* 64 

810 475 ktfIKmGoMHnjsSfcJ 670 



138 IU1 I Unit Crwp 


185 

id 9 I M ! * 

W3 25 1 56 iULlS 



Unless otherwise indicated, prices and net tBridends are bt pen and 
denomlnaiJOfis are 25p. Esitmaieo prteweanuaq* ratio* and covers are 
based an latest annul reports and accounts ami where possible, are 
updated on half-yearly figures. P/Es are calculated on “net" rflitrl button 
basis, earrings per slur# being computed on profit after taxation and 
unrelieved ACT where applicable; bracketed figures indicate 10 per 
cent or more difference if calculated on "nil" distribution. Coven are 
based cm 'Wrtmum" distribution, ihK co mp ares grog dfvktend costs to 
profit after taxation, excluding exceptional proflts/losses tut Indudaig 
esdmied ment ot oHseuable ACT. YleUi are based on middle prices, 
are gross, adjusted to ACT of 27 per cem and allow for value of declared 
distribution and rights, 

• "Tap Slock 1 '. ' ' 

■ Highs and Lows marked tins have been adjusted to allow for rights 
issues tor cash. 

t Interim since increased or resumed. 

2 Interim since reduced, passed or deferred. 

Tax-lrce to non-res menu on application. 

6 Figures or report awaited. 

i 9 Not officially UK listed; dealings permitted under Rate 535<4)(al. 
+ USM; not fisted on Stock Exchange and company not subjected to 
same degree of regulation as limed sewnies. 
tj Dealt In under Rule 535(31. 
d Price at time of suspension. 

5 Indicated dividend after pending scrip andfor rights issue; cover 
relates to previous dividend or forecast. 

4 Merger bid or reorganisation In progress. 

4 Not comparable. 

4 Same Interim: reduced foul andfor reduced earnings ImScned. 
i Forecast dividend; cover on earnings updated for latest interim 
Statement. 

T Cover allows for conversion of dtares net now ranking for dividends 
or ranking only for restricted dividend. 

A Cover dors not allow lor shares which may also rank for dMdend at 
a future date. No P'E ram usually provided. 

II No par value. 

B.Fr. Belgian Frans. Fr. French Francs. W Yield based on aBompdon 
Treasury Bill Rate stays unchanged until matuntvof stock, a Annualised 
dividend, b Figures based on prospectus or other offer estimate, 
e Cents, d Dividend rate paid w payable on part of capital, cover based 
on dividend on full capital, e Redemption yield, f Flat yield, g Assumed 
dividend and yield . h Assumed dividend and yield alter scrip Issue, 
j Payment from capital sources, k Kenya, m Interim higher than 
previous total. ■ Rights issue pending, q Earnings based on preliminary 
figures, i Dividend and yield exclude a special payment, t Indicated 
tkvtdrad: cover relates to previous dividend. PIE ratio based on latest 
annual earnings, u Forecast, or estimated annualised ohridend rate, 
cover based on previous year's earnings, v Subject to local tax. 
X Dividend cover In excess of 100 times, y Dividend and yield baled on 
merger terms, z Dividend and yield include a special payment: Cover 
does not apply to soeclol payment. A Net dividend and yield. 
B Preference dividend passed or delerred. C Canadian. E Mhumum 
tender price. F Dividend and yield based on prospectus w other official 
estimates for 1956-87. G Assumed dividend and >ieU after pending 
scrip andfor lights issue. H Dividend and yield based on prospectus or 
other official estimates for 1986. K Dividend and yield based on 
prospectus or other official estimates lor 1987-88. L Estimated 
annualised dividend, cover and pe based on latest annual earnings. 
M Dividend and yield based on prospectus or other of licfal estimates for 
1965-86. N Dividend and yield based on prospectus or other official 
estimates lor 1987. P Figures based on prospectus or other official 
estimates for 1997. a Gross. > Forecast annual It rtf dividend, cover and 
pie based on prospectus or other official estimates. T Figures assumed. 
W Pro forma figures. Z Divfdrnd total ID one. 

ADOrcvta hots' « e> dividend; a ex scrip Issue; «r ex rights; a ex all; 
d e« capital dtttriDauon. 


REGIONAL & IRISH STOCKS 

The following a a selection ol Regional and trim stocks, the latter bring 


Quoira m 

Albany Inv 20p ,_l 76 

Craig & Rot* 0 — I £26 -ig 

Finlay Pig. 5p 77 v-1 

Hoh'Jxl 25p ! 940 .. .. 

loMSun.0 i 108 v-2 

IRISH 

Fund 111,% 2988 £200*. — 

Nat 9Vv 8499—1 £98'jl — 


Irish currency. 

Fin. US 97*02 EUfc%! 

Atoms 373 

CPiHidgs 56 

Carrol Inds. X2S 

Dublin Gas 18 

Hants. 6 HJ 102 . — 

HruMiHtags. 28 

[ Irish Ropes 150 ..... 

I Unldare 405 ...... 


4- — — 

ZQld - 03 
Mid - ID 


h063q 3.4 3D 
022^ 9 2.4 

toilm j 

M6dL4 2.4 

^ = 


Z3.d - Ofl 

-3 - BA 


Ind u strial! 

All led- Lyons- 

Omstrad 

BAT 

BQC Grp 

SSR 

BTR 

Babcock 

Barclays 

Be ecJtam . — — — _ 

Blur Circle 

Boots 

Bowaters — 

Bnt Aerospace — .... 
Brit. Telecom 

Burton Ord 

Cadbury? 

Charter Cons. — 

Comm Unton - 

Couruuidv 

FNFC 

Gen Accident 

GEC - — 

Glaxo.— , 

Grand MM— 

GU5 'A 1 

Guardian — 

GKN 

Hanson Ts* 

Hawker Sind 

Id— 

Jaguar 

Ladbroke 

Legal i Gen 

Lev Service 

LifomsBank — 

Lucas Inds..-. 

Maria & Seencer 

Midland Bk 

Morgan Grenfell— 
A leleetfon 
London 


TRADITIONAL OPTIONS 
3-month call rates 

ns as nei 

" Not West Bk 

xw p iODid 

xn Racal Elect - 

to RHM 

47 Rank Org Ord 

an Reed I ittnl 

'zrz::. S pc 

« T1 

58 tsb. 

a TfiomEMr.I. -~™ 

22 Trust Houses— 

nj ” ig Turner Newafl — 

in — ™ 29 UrtW 

35 WWefs 

% Wellcome 

nt Bfl property 

— 18 Brit Land — — _ 

110 Land Securities 

40 MEPC 

IDO Peachey-—.——. 

ZrZZ 30 

15 BOM 

u eg Brit Petroleum— —. 

aa Burmah Oil 

?! Chartertull 

40 Premier 

s *»'■ 

s « Trlcentnjf— — 

48 Ultramar 

55 Minis 

»vtcw 18 Cons Gold 

. — 55 Lonrtio 

snfell™ — 35 Rio T Zinc 

leleetfon of Option* traded ■* given on the 
London Stock Exchange Report Pago. 











































































































































I 


20 

Standard 

Life 

for all 
your 


A development by SmdsdLzlc 


0800 
8333 83 

rjnilicc-BnBtUB itrough Stoi 

commercial property needs 


FINANCIALTIMES 


Saturday May 9 1987 


ajfflfffiAAffil 

British WtfKk 3 wvs 8 iDc>ors 
. fortheVVbrfd 

Tvt:(077 388)2311 


Bitter Hart withdraws from race 


BY STEWART FLEMING, US EDITOR IN WASHINGTON 


MR GARY HART, front-runner 
for the US presidential nomin- 
ation, yesteniay withdrew from 
the race and launched a bitter 
attack on the American system 


fluenced the timin g 0 f Mr Hart's 
decision. 

In tone and content, Mr 
Hart's resignation statement 
was more in tell ecu tal and less 


Hart’s withdrawal have already a front-runner in the polls is 
spread beyond, the confines of Rev Jesse Jackson, the blade 
this debate, however. For the populist preacher who ran for 
past two days, as his with- the nomination in 1984. 
drawal seemed increasingly in- ^ ^ 

symp athy for 


for selecting political leaders self-pitying than the retreat Mr evitable, htere hashen mount* jjj e circumstances which led to 

and the role the press plays in lUchard Nixon soundedin 1962 ing spec^UOT al^t its ^ Hart’s downfall, it is t em- 
it after faili n g to win election as pact on the Democratic Party nerprj by a widespread Ttercen- 

Mr Hart, whose decision to the GoveAor of California **•“ p - - Dy 3 wdes P read W*™* 


ABF pays 
£133m for 
Agricola’s 
stake in 
Berisford 

By Clay Harris 


the lex column 

Coming nicely 
to the boil 


going to have to seriously ques- more. runner status was always sus- before the D^SratiS rent “ s * ™ 

Son a system for selecting our But Mr Hart's comments pect— is now wide open. Some ggS. ronvention neS TCar the UK sugar refiner and 

national leaders that reduces seem certain to fuel the debate anticipate that bis withdrawal . y® • commodities trader, held by a 

the press of this nation to which has broken out as a will tempt new hopefuls into an His alleged womanising has subsidiary of Femrzzi, the 

hunters and presidential candi- result of the circumstances already crowded field. But there been a political issue since the Italian agri-business canglo- 

dates to being hunted, that has surrounding the collapse of his is little agreement about bow last presidential election. His znerare. 

reporters in bushes false and candidacy. The ethics of the the money which he would have critics say Mr Han exercised ABF, which owns such brand 

inaccurate stories being printed press, the extent to which it raised, or the voting support he poor judgement by putting him- names as Sunbiest, Ryvita, 

and photographers peeking in should be permitted to delve had, will be redistributed, or self in a position in which the Twining Tea and Baton’s Bis- 

aur windows ’’ into the private lives of politi- bow the members of his issue canid be turned against cults, is controlled by the 

Further reports that the cal candidates and the ethical campaign staff will redistribute him so concretely, even if , as Weston family of Canada. It 

Washington Post was about to standards the candidates them- themselves among the other he maintains, his relationship said it intended to retain the 

publish allegations of a rela- selves should hold are now candidates. with Ms Donna Rice was not holding as a long-term invest- 

tionship with another woman, being hotly disputed. Just how open the race now sexual and he has not been un* ment 

- The repercussions from Mr is is evident from the fact that faithful to his wife. 


seems to hire significantly in- 


Scheme to 
ease power 
station 
pollution 

By David Ftshlock, Science Editor 
BRITAIN’S coal-fired power 
stations will be fitted with 
burners designed to reduce 
emission of gases that contri- 
bute to add rain. 

The 10-year programme will 
cost £170m and will deal with 
nitrogen oxide (Nox) gases. It 
was announced yesterday by 
Mr William Waldegrave, the 
Environment Minister. Forty- 
four boilers and about 2,000 
burners will be converted. 

It will enable the Government 
to demonstrate, at an inter- 
national meeting due to be held 
in Geneva next week, that it is 
taking action in the case of one 
big source of Nox. At the meet- 
ing, governments will attempt to 
agree levels of Nox emissions. 

These are particularly respon- 
sible for damage to forests. 

About 40 per cent of Nox 
emitted in Britain is attributed 
to coal-fired stations and a 
similar amount to exhaust gases 
from motor vehicles. 

The British Nox control pro- 
gramme, to be mounted by the 
Central Electridty Generating 
Board in parallel with a sulphur 
dioxide control programme 
announced last year, is 
expected to cut emissions of 
such gases from power stations 
by up to 30 per cent. 

Lord Marshall, CEGB chair- 
man, said the board was 
“ encouraged by the substantial 
reduction " achieved in trials at 
Fiddler’s Ferry power station in 
Cheshire, which apply to about 
7,000 Mw of present capacity. 

Lord Marshall said that, un- 
like methods of dealing with the 
sulphur problem, no big capital 
expenditure or planning 

approvals were needed 
Lord Mar shall reported the 
results of the trial to Mr Peter 
Walker, Energy Secretary, in 
March and asked for investment 
approval. He would not 
normally have expected 

approval to be given before 
about the end of the year. 

A modified coal burner and 
oxygen feed system, designed by 
Northern Engineering Indus- 
tries to a CEGB specification, 
has been used at Fiddler's 
Ferry. 

Fuel is burnt in two stages, 
initially with a restricted oxygen 
supply. Under such conditions, 
nitrogen gas remains inert in 
the coal during the second stage 
of combustion, rather than being 
converted to Nox: 


Troubled Cannon Group puts 
Elstree Studios up for sale 


BY RAYMOND SNODDY 


The transaction took place 
without the knowledge, of either 
Berisford or Tate & Lyle, 
Britain's other leading sugar 
group, which itself holds 14,9 
per cent of Berisford. 

Rival bids for Berisford by 
Ferranti and Tate <fc Lyle were 
blocked in February by the 
Monopolies and Mergers Com- 
mission. Each had been in 
te rested specifically in British 
Sugar, the Berisford subsi d ia r r 
which controls more than hal f 


ELSTREE STUDIOS, one of the last year by agreeing to pay law which meant tax on foreign 

premier British film studios. £175m to the^Bond Coloration actors filming in Britain would, reqtdred by the 


has been put up for sale by of Australia for Thorn’s Screen from the beginning of this rwln» it* 

the financially troubled CannoJ Entertainment division. Bond month, be withheld. 

Group which bought it from had owned the division for a “We have a production in 7 fq h? Simarv 

Thorn EMI last year. week. Elstree until the end of June than 14.9, cent , byFehnmry 

Mr Jerry Weintraub, chair- Cannon said at that time it but after that the stndio will ***• 
man of the Weintraub Enter- had no intention of breaking be completely dark. We have nx W jSd rii3d anet 
tainment Group of Los Angeles, up Screen Entertainment and been trying to get production u 5 f£ 20 ml 

has been offered a 925m would keep the cinemas, film for the studio but so far we 

(£14Jhn) option to buy the library and Elstree Studios have been unsuccessful," said 

studio as a going concern; The together as an integrated pack- Mr Jenkins. 

option runs untU May 20. age- The studio would be operated « aS P £fd<£l 

Mr Weintraub was given the Now the 2,000-film library, as a going concern under the ..zJJLv WM Cl "* 

in London he was still apprais- including Pathe News, has been Weintraub option and Gannon ““J* 0 JJ? e 

ing the situation. " Cannon sold, Elstree is up for sale and had already turned down agoen rnax 

wants to sell it I don't know Warner Communications, the higher offers from developers. Fa* JSSfl/Swance 

letter I want to buy it" US group, has an option to take Closure __was a dear long !!M“LKJS325 STfhhSi 


yet whether I want to buy it" US group, has an option to take Closure was a dear long ^^ ^7 J c0 Kned ra third 
Mr Weintrau was given the over 50 per cent of Cannon’s term possibility if no produo- ABF lud 

00111(1 fonnd * m made no plans to raise the stake. 

Mr Henry Lewis, Berisford 


option on Elstree as part of the European cinemas. tion 

recent 884.70m purchase from Mr Barry Jenkins, chief Jenkins said. 

Cannon of the former Thom executive of the Cannon Group The Rank Organisation Mr 

EMI Screen Entertainment film in Europe, said things had recently cut the number of staff U co^ 

library. altered beyond Cannon's control at Pinewood Studios by hall 

Cannon, the film company since they had said Elstree was to try to reduce costs. the 

run by the Israeli-US cousins not for sale. Cannon would in the fixture 

Mr Men ahem Golan and Mr One factor was Cannon’s concentrate on its British 

Yoram Globus, astounded the fi nancial difficulties, and the cinemas and planned refurbish- vet hrrn 

British film industry in May other was the change in tax ment and expansion ***** n0t yCl 

ABF will use part of its cash 
resources of about £lbn to pay ; 
for the holding: i 

Tate said last week it would | 
consider putting its stake 
together with Fenuzzf s if this 
would achieve a higher price. | 
Mr James Muir Ken; finance 
director, said Tate’s intention 
to retain the Berisford holding 
as a bargaining chip in its 
attempt to win government sup- [ 


Australia’s largest gold mine 
operator to sell 25% stake 


BY CHRIS 5HERWELL IN SYDNEY 


NEWMONT MINING of the US, international currencies and March, offered 430m shares at for higher martens on cane 
which operates Australia's future production from South 50 Australian cents a share, refining was unchanged, 
largest gold mine, is to sell 25 Africa, the world's biggest non- BHP took up another 540m He described as “rMsmiabie 
per cent of its Australian gold communist producer. shares, representing 56 per the 29Sp-per-8hare paid by ABF. 

interests in what is believed to In Australia, gold’s renais- cent of the company, “It puts a floor under the 

be the country's largest public sance has helped drive the Newmonfs principal Austra- Berisford price.” he said. Berts- 
flotation. stock market to record highs ii an gold interest is its 70 per ford shares added 3p yesterday 

The group is offering 150m and has marked a bright spot cent stake in Telfer, a large- to close at 308p. 
shares in Newmont Australia at in *n otherwise d isma l com- scale open-cut mine in Western 
AS2.10 per share to raise raodity price picture for the Australia and the country's 
A S3 15m (£13 3m). This will give resource-rich continent. largest gold producer. BHP 

the listed company a market Newmont will offer 45m of Gold owns the otter 30 per 
capitalisation of A9L26bn. the shares internationally cent, but Newmont manages 
The offer follows closely the through a syndicate headed by the wiinp- 
A$215m flotation by BHP, Aus- Warburg Securities in London. Newmont also has 60 per 
tralia's largest company, of its Too men offer of the remain- cent of the new Celebration 
gold exploration and develop- mg l(»m Shares will be under- mine in Western Australia, 
ment interests in Australia and Macquarie Bank which is expected to produce 

the south-west Pacific region. partners, both of 48,000 ounces next year, and 

It comes two days after three A ^ tr ^ ia *. , recently acquired 100 per cent 

leading Canadian mining com- Mr David Tyrwhitt, managing of Wattle Gully Mine in 
panies — Placer Development, director of Newmont Australia, Victoria. 

Dome Mines and Campbell Red said the group’s production, *— ~ 


Soviet ship 
attack raises 
Gulf tension 


By Andrew Gower*. 
Middle East Editor 


CHIEF LONDON PRICE CHANGES YESTERDAY 

(Prices in pence unless otherwise Indicated) 


RISES 

Exch 104% 2005 ...£116| + 14 
Treas 84% 2007 ...£P9tfr + 14 

AC Hldgs 515 + 50 

Assoc Brit Foods ... 382 + 27 

Blue Circle 875 + 20 

Brit Gas 1104 + 9 

Britoil 284 + 32 

Dixons 408 + 21 

Enterprise Oil 273 + 29 

First Nat Fin 305 + 24 

Fisons 702 + 28 

Garnar Booth 298 + 27 

Glaxo £14* + i* 

Harris Queemrway -233* + 194 
ICI £13 i + * 


. A SOVIET cargo vessel has 

Lake Mines — announced plans fromthree gold mines, was solidated” Gold** F?eldc nf C j£ and t has < brouSt 

slur’s zs 

p The moves reflect the con- . BHP Gold hopes to produce XSca^&pmtSy? °Conso2 SS? 6 ** ^ ^ Guif 

tinuixig surge of interest in intte next 12 dated Gold Fields controls The attack followed an inten- 

gold and gold stocks as a months and 300,000 ounces in Remson Gold Fields, another tffvimr Iranian barrage of 
result of uncertainties about 1990. BHP*s flotation, made in Australian mining company. S-itSHm Smokow?*^ 8 

Tass, the Soviet news agency, 
said yesterday that the Ivan 
Koroteyev, a 10,000 dwt ship 
carrying building materials to 
the Saudi port of Dammam 


Ladbroke 4(77 + 9 

Marks and Spencer 2404 + 104 

More OTerrall 233 + 15 

NatWest Bank 620 + 22 

Peachey Prop 425 + 47 

Polly Peck 252 + 14 

Sains bury (J.) 546 + 32 

Sunlight Services ... 340 + 40 
Taylor Woodrow ... 407 + 22 

Tesco 530 + 26 

Valin Pollen 240 + 18 

Woolworth 867 + 31 

FALLS 

Davis (Godfrey) ... 185 — 12 

Gee/Rosen 45 — 8 

Runciman (W.) 198 — 10 


WORLDWIDE WEATHER 




Y'day 


Y'day 



Y'day 



Y'day 



midday 


midday 



midday 



midday 



■c 

•F 


•c 

•F 



"C 

•F 



°c 

■F 

Ajaccio 

S 

IB 

64 

Dallost F 

17 

63 

Madeira 

F 

11 

62 

Prague 

F 

14 

67 

Algiers 

S 

22 

72 

Dublin S 

17 

63 

Madrid 

S 

22 

72 

IRoykJvk. C 

4 

39 

Amidm. 

S 

13 

65 

Obrvnlc. F 

17 

63 

Majorca 

s 

23 

73 

Rhodes 

S 

19 

66 

Aihem 

s 

19 

66 

Ednbgh. F 

17 

63 

Malaga 

s 

21 

70 

Rio J‘o 




Bahrain 

s 

34 

S3 

Faro S 

22 

72 

Malta 

s 

19 

66 

Home 

S 

18 

B4 

3 a rein a. 

s 

18 

64 

Florence F 

21 

70 

M'chetr. 

s 

19 

66 i 

Salzbrg. 

c 

11 

52 

3sllast 

s 

16 

61 

Franktt. 5 

16 

61 

Melbne. 

s 

21 

70 

S F’daet C 

12 

64 

Bolprd. 

F 

12 

54 

Ganeva s 

14 

57 

Ms. C. 


— 

— 

Seoul 

s 

22 

72 

Barlin 

F 

14 

57 

Gibraltar S 

22 

72 

Miamit 

s 

23 

73 

Slngapr. 

T 

30 

86 

Biarritz 

S 

20 

68 

Glasgow F 

15 

66 

Milan 

s 

20 

68 

S'tiaga 




Bmghm. 

s 

IB 

64 

G'rnaey s 

12 

54 

Montrl.f 

c 

a 

46 

Stckhm. 

S 

12 

64 

Black pi. 

s 

18 

61 

Helsinki S 

12 

54 

Moscow 

c 

17 

63 

Strasbg. 

s 

17 

63 

B. Alraa 


— 

— 

H. Kong C 

23 

73 

Munich 

c 

13 

66 

Sydney 

c 

18 

64 

Bombay 

F 

32 

SO 

Innabrk. F 

13 

56 

1 Nairobi 

F 

24 

75 

Tangier 

F 

22 

72 

Bordx. 

S 

19 

68 

Invmea. C 

13 

55 

Naples 

F 

21 

70 

Tel Avhr 

S 

24 

76 

Boulgn. 


— 

— 

l.o. Man C 

9 

48 

Nassau 


■ — 

— - 

Tenerife 

F 

24 

75 

Bristol 

S 

17 

63 

Istanbul F 

14 

67 

Nwcatf. 

F 

18 

64 

Tokyo 

s 

23 

73 

Bruaasls 

s 

13 

56 

Jersey s 

17 

63 

N Delhi 

s 

27 

91 

Trontot 

c 

6 

43 

Bud pat. 

F 

13 

56 

Jo 'burg F 

24 

75 

N Yorkt 

c 

13 

55 

Tunis 

s 

20 

68 

Cairo 

S 

2B 

79 

Leeds F 

20 

68 

Nice 

s 

17 

63 

Valencia 

c 

19 

66 

Cardiff 

s 

16 

59 

L Pirns. F 

21 

70 

Nicosia 

F 

20 

68 

Venice 

s 

19 

66 

Capa T. 

5 

18 

B4 

Lisbon C 

21 

70 

Oporto 

S 

22 

72 

Vienne 

c 

14 

57 

Chicago! C 

11 

62 

Locarno C 

20 

68 

Oslo 

S 

12 

54 

Warsaw 

c 

10 

50 

Cologne 

F 

11 

62 

London S 

17 

63 

Parle 

5 

17 

63 

Wseh'tn 

s 

14 

67 

Cpnhgn. 

S 

14 

67 

L. Ang.t F 

17 

63 

Poking 

S 

25 

77 

Well’tn 

s 

14 

57 

Corfu 

S 

70 

00 

Lrambg. S 

15 

69 

P««b 

II 

IS 

01 

Zurich 

5 

75 

39 

C— Cloudy. Dp— D rizzle. 

F Fair. Fg Fog. 

H— Hail. R— Rain. 




s— Sunny. SI — Sloflt. Sn — Snow. 

T— 

Thunder. 





Base rates Continued from Page 


societies are reluctant to re- plenty of room, 
duce mortgage rates in The maiyi™ between £rom Novorossiysk on the Blade 

response to yesterday's base gage rates, at 1 L 25 n£r 7.^’ S® 8 * sustained serious damage 
rate cut, arguing that it would and base rates is now %%% when it came under rocket and 
be unwise to do so with a gen- percentage mint* machine gun fire from imidenti* 

eral election imminent. witt L25 prints \JS £ ] P KS fied laches on Wednesday. 

In addition, they do not want rates started MUJneinM^Sf There were no 08511 alties - 
to reduce the rates paid to For most of l2t The launches are thought to 

savers as this week's sale of mnrtHn was oneflnint*^’ have been high-geared Swedish- : 

Rolls-Royce shares has been SanTtinl ^ built boats ffifthe type Iran has 

draining their funds. Mortgage ; c iTc’ whose . ““rt- recently starting operating 

demand is also high, putting gr® from five locations in the Gull 

considerable strain on their indication it would The use of the boats, believed 

resources. “®“ f ?? J m „ th0 to be fitted with first-class com- 

“By Monday, we'll probably Alex ivicoil adds: The stock munications equipment, marks 
have an election announced,” market’s election euphoria pro- a dramatic increase In Iran’s 
Mr John Bayiiss, general man- duced record volume on the ability to harass shipping, 
ager of the Abbey National, Stock Exchange's traded options Tensions in the Gulf have 
Britain’s second largest society, market with 87,461 contracts also risen sharply as a result 
said. "Who knows what will traded compared with the pre- of an Iraqi attack on Iran's 
happen tten7 We could have a vious record of 82,465 on Febru- Sassan oilfield on Wednesday. 

° n ^ hands ” SJT, i 1 * t ? ie options on The latest incident foUows 
no 15—8/84 British Airways shares were Intense Iranian criticism of a 

However, it 15 possible that launched. British Gas, with recent deal under which Hoe- 
other lenders will take the 24.481 contracts dealt cow agreed to charter three 

opportunity to undercut representing 1.000 shares, was tankers to Kuwait, a key finan- 
socdeties m a bid to increase by far the most actively traded cial backer of Iran’s enemy 
their market share. There is option. Iraq, in a bid to deter Iranian 

attacks on ships going to and 
from Kuwait. Separately, the 


WORLD ELECTRONICS 
CONFERENCE 

London, 13 & 14 May, 1987 

ForMcmatloH pbmsa nitmMt atftwttKmnt 

together wtth your business cant, te 

financial Times Conference Organisation 
Mmster House, Arthur Srert, London EC489AX. 
or tafaphene: 01-621 1355 tatoc 27347 FTCQNff G. 
fan 01-623 8814 


US has reached agreement in 
principle to re-register up to 
11 Kuwaiti tankers under the 
American flag. 

Hojatoleslam All Khamenei, 
tiie Iranian President, yesterday 
said that both the Soviet Union 
and the US were showing open 
partiality to Iraq. 

Moscow’s reaction to Wednes- 
day’s incident has been remark- 
ably circumspect so far. Tass 
denounced it as a piratical 
.attack but refrained from 
assigning blame, and said 
"competent Soviet organs” were 
conducting a thorough investi- 
gation. 


The great thing about the 
stock market is that while it is 
perfect it is not perfectly 
logical. Cats in base rates and 
a strong Conservative perform- 
ance In the local elections had 
been well and truly discounted, 
and yet when both events came 
to pass, the market thought it 
worth about another 115 per 
cen on share prices. If any’ 
thing, the actuality did not 
amount to what had been pre- 
viously discounted. The Con- 
servative performance was 
touted as equivalent to a post- 
election overall majority of 
about 30 — which does not leave 
much room for error or erosion. 
Bond prices, moreover, were 
shooting for a full point cut in 
rates, which would incidentally 
have the political virtue of pre- 
cipitating a cut in mortgage 
rates. 

Yet the Government is 
clearly aware that its most 
stupid course of cation would 
be to put everything on the 
table even before the election 
date is announced, thus leaving 
room only for reverses in the 
crucial few weeks of campaign- 
ing. So even as the rate cut was 
announced, the Bank was busy 
selling the home currency in 
exchange for, most particularly. 
D-marks. Against such a patent 
combination of polities, it is all 
the more a testament to the 
Impetus behind sterling that 
its trade — weighted value did 
not flinch. The £lbn tap that 
followed may well have been 
part of the same operation in 
that it will contain the adverse 
effect on the money supply of 
spewing out large volumes of 
sterling. 

Yet such behind-the-scenes 
manoeuvres will not have 
weighed over much on an equity 
market in which lines of stock 
were being swallowed up by 
buyers even before the vendors 
on the other mid of a telephone 
line were sbel to complete the 
names of the shares involved. 
Not that the overheating of 
British Telecom’s lines was the 
reason for a further £840m 
being added to the value of its 
paper. As with the 9 per cent 
rise in the British Gas partly- 
paid stock, the mixture of a 
disappearance of renationalisa- 
tion fears, and the assurance of 
a solid yield while interest 
rates' slide, is hard to argue 
against. 

The equity market as a 
whole, however, appears more 
than ever like a General Elec- 
tion Warrant. And as everyone 
knows, the value of warrants 
declines over time, until the 
exercise date, when they are 
the same value as the under- 
lying equities. Which is to say: 
after the putative Conservative 


Index rose 30.7 to 
1658.7 


London Inierbnnk 



victory Investors will be faced 
with the anti-climax of fating 
up to values on a five-year, 
rather than a five-week, view. 

AS Foods /Berisford 

A long-term investment is 
what S & W Berisford once 
called its initial stake in British 
Sugar Corporation, Associated 
British Foods can hardly expect 
to be believed when it describes 
its purchase of Femmi's 23.7 
per cent stake in Berisford the 
same way. The bid may take 
some time coming — after all 
Tate & Lyle wants to keep its 
14.9 per cent stake until it gets 
satisffotion on the cane sugar 
refining margin — but it would 
be a very neat way of shoring 
up an unstable industry. 

That part of AB Foods' 
famous cash pile, currently 
totalling more than flbn, 
invested in the gilt-edged 
market should have done pretty 
well recently. Although AB 
Foods may soon take advan- 
tage of its freedom to sell its 
equity stake in Dee Corpora- 
tion, a more general switch 
from bonds to equities now 
might be well timed, leaving 
aside the company’s long-felt 
aspiration of putting the 
money to better use. Reviving 
Ferruzzfs idea of plucking 
British Sugar from Berisford 
and allowing the management 
to buy out the rest, would give 
AB Foods a related business 
at a price which would not 
dQate Its earnings unless it 
were to bid up to a ludicrous 
level. There should be no good 
reason to object to a bid on 
monopoly grounds. The only 
drawback would be that British 
Sugar, already recovering 
under new management has 
little scope to grow its existing 


business given the quota 
restrictions on beet and there 
is not a let more that AB 
Foods can bring to the party. 
The quality of AB Foods' earn- 
itxga may not be Improved by 
the deal. 

As for Tate. AB Foods Is a 
far preferable competitor in 
the UK sugar market than the 
European beet giant- And Fer- 
ruzd has plenty of other good 
homes for AB Foods' £133 -2m. 

Halifax swap 

While house-buyers are clam- 
ouring for more mortgage 
money the floating rate note 
markets have been rather re- 
luctant to lend of late, to put 
it mildly. Tbe obvious solution 
for the intermediaries was to 
launch a fixed-rate issue and 
swap it for floating rate money. 
So obvious indeed that it Is no 
longer attractive to do it in the 
natural maturities of five years 
or so. 

The Halifax building society, 
with the help of Morgan Gren- 
fell, found the answer in a 
three-year swap attached to a 
five-year bond issue. The bond 
pays a fixed rate for the first 
three years and then turns into 
a floater paying a margin over 
London Inter-bank offered rate. 
Tbe overall cost to the Halifax 
apparently ends up comfortably 
under Libor. Investors are 
notoriously wary of bonds 
which mutate, but at least they 
have the protection against a 
rise In rates after three yean. 
And unless the floater market 
is even sicker then than now. 
It ought to be worth something 
near par. 


Garnar booth 


It would be nice If share- 
holders in Garnar Booth could 
at least feel certain time some- 
one will take the company off 
their hands, yet there must 
remain some outside chance of 
a monopolies reference costing 
in to spoil the dance. Without 
that intervention, however, the 
Garaar affair has become * sort 
of “La Bonde” of the leather 
world, in which recommended 
offers from successive suitors 
have been superseded by a 
mandatory offer from Ptitard, 
which weighs in at Q.85p above 
the latest recommended bid 
(from Hillsdown). Recommen- 
dations probably do not count 
for a lot this week, but it is 
hard to see how on offer cali- 
brated in Pittard shares that 
stood at just over JE1 last Octo- 
ber can seriously be recom- 
mended on tbe basis that this 
unit of measurement is now 
worth 324p- 



WHY THE 
SMART MONEY IS 
GOING INTO GILTS 


tovhliMlIyanofliCTWOTidbondinflri^fftg, 

TheShort'ftimbdanli^mQg&tsare: 

• The opinron polls, show the Ck»saWiweswefl ahead. 

0 Mrs Thah^ieris hinted an eaitydectkxL 

The Medlnmlferm factors encouraging gOts are: 

•The vaykar Government lXHrowingftyl98ft87^ 
onroityear figures will also be low. 

#TbeaceiaKxxi of cute in hank aixilxrikiingsocMv interest rafy-gmiy 

near future. 

. The Longer^ Harm factors in favour of gits are: 


- - ’are re-elected. 

• mcontiiKiii^,relativdykjwrate oflnfiafion which should bebekw4% asain 
by December, ^ 


infte short, medium and long fcenn. 

Theno-loadiEttmGat-BdgedRind is already up by ewer 26% since launch 


gito, having altiBcted&50mfl 10,000 investors. 


ACT NOW— belcwe interest rates fan again 


jEtnaUfebunranoe Company L&M01 St John Strett, London EClV4QE.Keg.No. 1766220. 

33* ; 

Dm I Wb mote MhMfcQ. " 

Pbooe opt CD ata roer Care ■ Address- 

Centre- P M WO an d aafclfac I 
operator lor FREEFONE ^Em. - 

ItwCenoelsopenfroni | — - ' ' — — — -Postcode. 




Date of Birth 

I Usual Rrofeadoniil adviser (U«iy) 

I RSByeunreedFemployedwluHeno 
pen 

tk ^ 


aLCinak new Oh-Edged nukn Bu&O 


i 


I 



WEEKEND FT 1 



Financial Times 


Saturday May 9 / Sunday May 10 1987 


• MARKETS ♦ FINANCE &THE FAMILY* PROPERTY ♦TRAVEL* MOTORING ♦ DIVERSIONS • HOW TO SPEND IT* BOOKS • ARTS* TV* 





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Coming in on a wing and a prayer is no longer necessary. Technological 
advances have transformed aviation safety. David Sawers explains 

Happier landings 



F OG BAD reduced visibility to 
30 metres at Croydon Airport on 
the morning of December 9, 
1936, but aircraft ' continued to 
depart ' At' that time' the pilot 
was left -to decide whether conditions 
were safe for flying, and taking off in 
fog had become normal practice since 
airliners had been equipped for blind 
flying. A white line on the grass of the 
airport guided pilots In the safe direc- 
tion for take-off, and they flew by their 
instruments when airborne. 

The dangers, of this simple system' 
were tragically demonstrated. When 
the -pilot of a KLM Douglas DC-2 tried 
to take off. he began to turn to the left 
.of the white line after .200 metres of 
his take-off. run. Once away from the 
white line he 1 became completely dis- 
orientated by the fog and continued on 
* a- curving path until the DC-2 was run- 
ning at right angles to the correct path, 
banked over with only its left wheel on 
the ground. He finally managed to get 
both wheels in the air ’only SO metres 
from the boundary of the airport. Air 
though the wheels struck the boundary 
fence, the DC-2 kept airborne, and con- 
tinued climbing slowly towards the 
south. But the ground rises to the south 
of Croydon; and the aeroplane’s climb 
was too slow to carry it over the ridge. 
The . DC-2 hit the . roof of a house bn the 
north side of the road along the ridge, 
dropped into the road, crashed into a 
-house on the. south side of the road and 
burst into flames. Of the 17 people on 
board, only . one passenger and the 
' stewardess survived. 

The Air Ministry’s inquiry into the 
accident blamed the pilot for an "error 
or airmanship’’ in allowing his aircraft 
to swing off the white line when taking 
off. and for an error of judgment in 
failing to stop when he had lost sight 
of the line. The .report nowhere dis- 
cussed the safety of the system at Croy- 
don, nor the greater difficulty of follow- 
ing a white line in fog in an aeroplane 
that took off at 70 mph* rather than at 
50 mph, like the older biplanes. At 
70 inph it would have been virtually im- 
posible to follow the line visually, so 
the only practicable method of take-off - 
would- have been to rely on instruments. 
If the pilot of the DC-2 had been watch- 
ing his instruments, be would have 
known: that he was swerving dangerously 
off course. He was probably not the 
first (and certainly not the last) pilot to 
crash because he relied on his senses 
more than bis Instruments in' conditions 
where the instruments were to be pre- 
ferred. 

Today the -risk of being killed when .. 
flying on a British airline is one four- 
hundredth of the risk in the late 1930s. 
and less than half that of being killed 
when travelling on British Rail. The 
transformation has come about through 
progress in technology and changes in 
attitudes. Technology has., made air- 
craft more reliable, more-powerful and 
more easily controlled and provides, in- 
struments which can. perform, many 
tasks Which fliers had to undertrim- in 
the 1930s; attitudes have becoqje mpre 
trustful of . technology and. less trustful 
of human judgment; .more willing to 
accept regulations- and less Willing. to. 
trust the captain. Pilots, now have to 
take fewer decisions when flying be- 
cause more are taken by instruments or 
regulations. The remaining decisions 
are more likely to be influenced by 
caution. 

One decision that the captain no . 
longer has to make Is whether condi- 
tions are fit for flying. The Civil 
Aviation Authority now has to approve 
the regulations set by each airline. The 
minimum visibility in which it permits 
a take-off for . an. airliner with modern 


equipment, using a lighted runway. Is 
150 metres. For business aircraft of 
the size and performance of. the DC-2 
using an airport without runway light- 
ing like Croydon, it recommends that 
a takeoff should not be attempted in 
visibility of less than 600 metres. What 
was regarded as normal in 1936 is re- 
garded as foolhardy today. . 

The DC-2 crash led to suggestions.-that 
the pilot should not have to deride 
whether conditions were safe for flying 
because he might be influenced by the 
desire to keep the service going — or 
to demonstrate his ability to fly in bad 
conditions. Such suggestions were ridi- 
culed in the aeronautical press.- How, 

- an . editorial in Flight argued, could 

some official know better than, the pilot 
whetber.it was safe to fly: only the pilot 
could know whether it was safe to take 
off any particular aeroplane in any par- 
ticular conditions. Hie accepted attitude 
In Britain, then and until around 1950, 
was that the skill of the pilot deter- 
mined the safety of flight The judg- 
ment of the pilot should therefore be 
supreme. ...... 

This attitude may have survived so 
long in Britain because many influen- 
tial individuals in airlines and govern- 
ment were survivors of the pioneering 
days when everything did depend on the 
skill of the pilot Some had come from 
the RAF where attitudes were as con- 
servative as the designs -of the- biplanes 
it was still buying in the 1930s. Hie 

- British Government did not require 
airlines to produce operational hand- 
books — guides for its staff, which 
include instructions on the minimum 
risibility for taking. off. or landing at 
each aerodrome — until the Inter- 
national Civil Aviation -Organisation 

' recommended its members to do so in 
the late 1940s. The US Government had 
required airlines to provide operational 
handbooks in 1984. 

Hie British Government did not 
trouble to approve .the grin imam visi- 
bility standards of the airlines until a 
committee headed by aviation pioneer. 
Lord Brabazon recommended that it 
should do so in 1951; by 'then Britain 
and the Netherlands -were the only 
major aeronautical' nations In which the 
government -did not impose such con- ; 
trols. K . 

This reluctance of British governments 

to ' regulate the safety standards pro- 

• rided a' strange accompaniment to 
their enthusiasm for controlling the 
airlines’ commercial activities — 
especially when alleged safety benefits 
were often used to justify the controls. 
In the US, closer regulation of safety 
had been combined with commercial ! 
competition In the 1980s. American 
safety regulations were about 20 years 
ahead of British regulations — and are 
still rather tougher — which must be 
one reason why passengers on British 
airlines were, until recently, more likely 
to be killed than passengers on US air- 
lines. 


Technical progress In the design of 
instruments and control systems has 
eliminated the heed for more decisions 
by pilots. Automatic or semi-automatic 
landings have done most to reduce acci- 
dents by using instruments which do 
not need to see. No major accident 
has occurred during an automatic land- 
ing, but accidents continue to occur 
when pilots control the aircraft them- 
selves. Even when risibility is good 
enough for visual landings to be per- 
mitted, landing aids can guard against 
human error. 

. When the - DC-2 crashed at Croydon, 
the 'first step in the development of 
modern aids to landing had just been 
. taken. The Lorenz beam, a radio beam 
that guided pilots -along the correct 
' approach path to an airport; was being 
installed at Croydon and had been in- 
stalled at several European and US air- 
ports — it had been developed by the 
US Bureau of Standards, though the 
original idea went baric to a patent 
taken out by Lorenz in 1907 with the 
guidance of ships in mind. The pilot 
still had to rely on his altimeter to 
judge his descent, and the signals were 
slow to warn of deviations from the 
correct path, so the system was far from 
foolproof but better than nothing. 

The modern instrument landing sys- 
tem. which guides an aeroplane in alti- 
tude as well as direction, did not come 


until the 1950s, and its development in- 
to automatic landing systems came in 
the late 1960s. These systems linked 
the aeroplane’s autopilot to the instru- 
ment landing system, which itself was 
made more accurate, so that an aero- 
plane could be piloted automatically 
right down to the runway, and then 
guided along it The system can then 
be used to guide the aeroplane along 
the runway for take-off. Minimum risi- 
bility in which aircraft are allowed to 
take off with this aid is 150 metres. 

Getting the benefits of automatic 
systems involves making them so re- 
liable that failures are virtually un- 
known, so that pilots have no excuses for 
relying on their own skifis and under- 
stand how the new system works. Acci- 
dents have happened because pilots 
thought the automatic system was faulty 
and switched it off when there was 
nothing wrong. In an accident at Gat- 
wick, the pilot of an Afghan Boeing 
727 disconnected the automatic pilot 
from the instrument landing system and 
made a manually controlled approach in 
fog because a warning light had come 
on. (The light merely indicated that 
one system was overloaded, not that it 
was defective.) The pilot then allowed 
the aeroplane to descend below the 
glide path because he was looking out 
the window to try to spot the approach 
lights instead of watching the instru- 


ments. The aircraft struck a house a 
mile-and-a-half short of the runway. 
Most of the passengers were killed in the 
fire that followed. 

This was one of many accidents that 
might have been avoided if the 727 had 
been fitted with a ground proximity 
warning system, which warns the pilot 
to pull up if his altitude has become 
dangerously low. 

Reliability is the other gift that tech- 
nology has provided. In the late 1930s. 
14 per cent of accidents in the US were 
caused by engine failures. Until the 
recent troubles of the Pratt and Whit- 
ney JT-S, engine failure had become a 
rarity. The jet engine has become amaz- 
ingly reliable because it is so much 
simpler than the piston engine, and 
there are few parts to go wrong. With 
modern methods of monitoring an 
engine’s condition, overhauls no longer 
need to be undertaken at regular inter- 
vals and engines may run for years be- 
tween major overhauls. This reliability 
can prove a disadvantage if serious de- 
fects arise — like the cracks in com- 
bustion chambers on some JT-fls — 
which are not revealed by the monitor- 
ing system. Maintenance staff might 
never have experienced major troubles 
in an engine and would be less likely 
to suspect that any symptoms could be 
those of a serious defect. Trouble-free 
years may have produced a degree of 


complacency. 

The improvement in safety standards 
among airlines has left enormous 
differences internationally. Flying may 
be the safest form of transport on the 

airlines of Australasia, North America, 
Europe and Japan, but this distinction 
is less certain in Africa, Asia and South 
America, where ifae rate at which jet 
airliners get written off in accidents is 
twice the European rare, four times the 
US rate and ten times the Australasian 
rate. Flight International’s review o: 
international airline safety shows that 
the risk of being killed on US airlines 
is about one ninth of the risk on Indian 
or Venezuelan airlines, one twenty- 
sixth of the risk on Colombian airlines, 
and one forty-sixth of the risk on Tur- 
kish airlines. 

Australasian airlines have long been 
the safest in the world, whether safety 
is measured in terms of serious acci- 
dents or deaths; the runners-up are 
closely bunched and vary over time. 
French, German, Scandinavian, and US 
airlines come in the second bunch. 
British airlines hare recently joined 
them but the Japanese dropped out after 
the 1985 crash of a 747 that killed 515 
passengers. The British record has 
been better than average over the last 
dozen years, but it was much worse 
than average in the previous decade. 


caused by the same factors that have 
made flying safer over the last 50 years. 
The extent to which flying has been 
automated varies internationally, as do 
the natural hazards of weather and 
geography. A pilot in Africa and South 
America will have less assistance from 
ground-based systems — there are sull 
airports without instrument landing 
systems — and will have to face more 
rain, stormy weather and mountains 
than a North American or European 
pilot. The crash that killed President 
Machel of Mozambique shows the 
hazards faced by pilots in Africa: there 
was no traffic control radar to tell the 
pilot he was miles off course. 

People have to accept that the instru- 
ment knows better than the person and 
that the most common cause of acci- 
dents is to believe otherwise and 
diverge from the rule book. There is 
no place for individualism or the hero 
in safe flying; this may explain why the 
British airlines had a poor safety record 
until the 1970s. The pilot as hero and 
captain of his machine had a long run 
in British tradition, but it might have 
been fatal for many passengers. 
Glamour and excitement do not belong 
in a safe and profitable mass transport 
business, which is what air transport 
became long ago in the US and more 
recently in Europe. 

. flying has become so safe 

m Europe, the US and Australasia, wihat 
is kkely to be worthwhile is increased 
automation of the pilot’s task, which 
would make airlines able to provide 
more reliable sendees as well as re- 
ducing the risk of accidents, plus im- 
proved features like collision avoidance 
and wind shear systems. Progress in 
this direction has already allowed the 
normal crew to be reduced from three 
to two pilots, but it is unlikely to make 
one pilot acceptable for airliners, even 
if it is accepted for trains; a train can 
stop if the driver has a heart attack, 
but airliners need some human guid- 
ance to descend to earth. When thev 
need no such guidance they will need 
no pilot; and this wholly automated 
aeroplone would be the safest of all. 
Passengers, however, may need some 
persuading to fly without a pilot, even 
if this development was the last logical 
step iu the progress of safe flying. 


The Long View 


Success story breeds more success 


UNIT TRUSTS always made a 
lot of noise., but when you 
looked at the figures for sale* 
volumes they never seemed to 
add up to much. Now, sud- 
denly, the unit trust industry 
begins to look like a force in 

the land. 

In 1982, for ezample, unit 
trusts pulled in just 5.6 per 
cent of the savings flow attrac- 
ted by building societies, and 
In. terms' of overall value they 
were looked down on even by 
the investment trusts. . . 

. Now, having spent about 50 
years gathering Its strength, toe 
unit trust movement has finally 
produced a surge of growth. 
With an aggregate value of 
£38 ^bn at the end of March 
they were nearly twice as big 
as the In ve s tm ent trusts, and if 
they still did not look toe 
£120bn building societies in the 
Face they were at least no . 
longer chewing their shoelaces. 

So the unit trusts enjoyed a 
aet inflow some 40 per cent of 
that of the building societies in 
LQ86. and the proportion rose 
:o 53 per cent in the first 
matter of this year. 

Now, given that the life 
issuance companies control 
tssets of around £150bn, and 
he pension funds &dd up -to 
nore like £I90bn, there is' a 
ong way to go. In fact, direct 
xoldings of equities by private 
ndividuals are supposed to* 
imount to’ ’ something like 
HOObn, although that includes 

neg a millionaires ' like Alan 

Sugar and’ David Sainsbury as 
veil as several million small 
nvestors- 

But the unit trusts .. are . 
asking the most of their opport- 
unity. Their biggest selling . 
flint of course, is the pro- 
roged bull market in equities, 
routing succeeds like success,, 
nd the Unit Trust Association 
s fond of repeating statistics, 
uch as that the value of £1.000 
nvested ten years ago. in the 
ledias UK general fund has 


Until a few yean 
ago, unit trusts 
were the poor 
relations of die 
investment world. 
Now, however, their 
prospects look much 
better. Barry Rfley 
looks at die factors 
which are helping to 
boost their popularity 


grown, with income reinvested, 
to £7,077, while a building 
society term - share account 
would only have accumulated 
to £2^45 over toe same period. 

Mind you, if -the unit, trust 
had- kept pace- with the FT- 
Actuaries All-Share Index it 
would have grown to over 
£84.00, but that’s another story. 

At any rate, unit trust 
managers report that a -good 
part of the recent upsurge in 



sales reflects the way that exist- 
ing, satisfied customers have 
been coming back for more. 

And falling interest rates 
could .provide more grist for 
the unit trus t s* mills. When 
rates drop/ building society in- 
vestors are encouraged to move 
into: the long-term capital 
markets to seek the capital 
gains that could offset their 
declining income. 

But there are also important 


•CON T ENT S - 

Books: The new Oxford mastrated history of Literature X 

Finance: Auction records boost investment in art 

vn 

Gardening: . . . and bow to furnish your garden 

XIX 

Motoring: Supercharged supermini: Daihatsu Charade IX 

Property: Buying into Irish grandeur 

xvn 

Travel: High life and low life in Barcelona 

IX 

Alta XXUl Ftoanct % Fomfly FV-VHi sport 

Books X Qotdenhifl XIX Stock Mcifccw 

feMoo VII Hew To Spend It XIX London 

CMoc - Vlll Motoring IX Frankfort . 

Crossword XXIV Prapartr XII. XV. XVII Trawl 

XVIII 
II. Ill 

DC 


tax reasons for the upsurge in 
trust sales. Until a few years 
ago unit trusts were the poor 
relations of life assurance in 
. terms of tax treatment, but that 
lias now been reversed. 

Unit trusts were given 
shelter against capital gains tax 
on switches within a fund, life 
assurance premium relief was 
abolished, and now, in the 
recent budget, toe tax rate on 
life capital - gains has been 
raised- h ^otth or two. 

So a number of big insurance 
offices - suCh as Prudential, 
Standard life and Commercial 
Union have been making major 
waves in toe unit trust business. 
Moreover, insurance inter- 
mediaries, sensing the way toe , 
wind is blowing, have been 
promoting unit trusts, though 
the commissions are usually not 
so attractive for them, at least 
for the time being. 

With new entrants, toe 
number of individual authorised 
unit trusts has been mushroom- 
ing, topping . the 1,000 mark in - 
the- first quarter of this year. 
This has -greatly increased the 
scope 'for portfolio management 
services' for unit trusts. 

Such switching activities can 
provide lucrative commissions 
for. Intermediaries. An 
enormous turnover from one 
trust to -another has developed, 
the currently popular move 
■being! . to take profits on 
Japanese funds and switch back 
into the UK. 

. Interestingly, the same kind 
of multiplication of funds has 
been taking place In the US, 
where there are approaching 
2.000 mutual funds, much more 
than doable the number of five 
years ago. In fact there are now 
more mutual funds than there 
are companies (nearly 1,600) 
listed on the New York Stock 
Exchange. 

In a very real way. the unit 
trust and mutual fund pro- 
moters on both sides of toe 
Atlantic are using specialisa- 
tion to replicate the variety of 


the underlying stock markets, 
adding an international dimen- 
sion and, crucially, building in 
a much fatter remuneration 
structure for the salesmen. 

That investors should be 
building up portfolios of speci- 
alised unit trusts or mutual 
funds rather than individual 
underlying stories is a tribute 
- to toe marketing power of toe 
unit trust industry (or perhaps 
It is a reflection of toe ineffec- 
tiveness of stockbrokers). 

But there is another strange 
effect In theory there ought 
to be more unitholders than 
there are direct holders of 
shares, because Individual hold- 
ings are more risky. The 
natural sequence should be to 
start with units, then graduate 
to toe underlying securities 
market when you have 
acquired growing wealth and 
confidence. 

In practice, however, there 
appear to be something like 7m 
individual shareholders in the 
UK but only about 2m unit- 
holders. This is something of 
a blow to the self-esteem of the 
unit trust industry, though in 
such booming conditions the 
distress is far from acute. 

There is an easy explanation. 
It must be emphasised that most 
of the ‘‘shareholders’* do not 
hold serious portfolios. They 
own only one or two recently 
privatised stocks, or bold shares 
or options in their employing 
company. They have been spoilt 
by Government give-aways, as 
the gold rush for Rolls Royce 
this week has demonstrated. 

With privatisations you make 
an instant profit on your invest- 
ment. When you buy a unit 
trust you show an instant loss 
of about 6 per cent, the 
difference between bid and 
offer prices. 

But then, the unit trusts 
won't scale down your 
application and return most of 
your money. 



Two year 
performance 
to 1st May 


Trust 

Percentage 

increase 

Position 

in 

European 

in value 

+131.1 

sector 

5th 

Worldwide Recovery 

+104.8 

2nd 

Pacific 

+98.5 

13th 

Japan 

+96.0 

26th 

International 

+86.2 

9th 

Income & Growth. 

+84.1 

5th 

UK 

+82.4 

37th 

Practical 

+71.6 

1st 

High Income 

+59.6 

13th 

American 

+16.7 

30th 


Rfcuresto 1.5.B7. Source,- Opal, efforts bid. income reinvested. 

Above we detail the performance of all 
our onshore authorised unit trusts. 

For further details about any of 
the above hinds, write to 
Oppenheimer Trust Manage- 
ment, Mercantile House, 

66 Camion Street, London 
EC4N6AE. 

A member company of the Mercantile House Group. 



Opprabrimrr 

FiHMaucefiartUil 





II WEEKEND FT 


Financial Times Saturday May 9 1387 



IT would be hard to conjure up 
a set of circumstances more 
guaranteed to send the London 
market through the roof, which 
is where it went yesterday. 

Investors woke in the morn- 
ing to find that the Tories had 
done well in the local govern- 
ment elections, making a June 
election seem certain and a 
clear Conservative victory a 
firm odds-on bet. And a few 
hours later the Bank of Eng- 
land obliged by finally ending 
its week-long resistance to a 
further cut in base rates, which 
promptly fell half a percentage 
point to 9 per cent. 

Hardly surprising, then, that 
the FT-SE 100 index soared 
away, to close at 2126.5 up 
58 on a week before. 

A further early cut in interest 
rates — on top of last week’s 
half a percent reduction— had 
seemed a near certainty ever 
since Tuesday, when official 
figures revealed an unexpect- 
edly large rise — to a near- 
record level— in Birtain's 

foreign currency reserves in 
April. The reason was very sub- 
stantial Bank of England inter- 
vention, to slow the apprecia- 
tion of sterling against other 
currencies. 

But with the local elections 
going so well for the Tories, 
thus putting even more upward 
pressure an sterling, the stron- 
ger corrective medicine of an 
interest rate cut became inevit- 
able. 

And aH this was music to the 
gilts market. On Tuesday it ex- 
hausted the Government’s £lbn 
tap, which was only Issued the 
week before. The yield on long 
dated gilts now seems at the 
point of falling below that on 
US long bonds, as American 


rates rise in response to the 
dollar's weakness. 

The UK equity market, for 
its part, has shown itself 
capable, over the past couple of 
weeks, of upward momentum 
to record heights, with a degree 
of detachment from the rather 
less buoyant, albeit highly vola- 
tile, New York and Tokyo mar- 
kets. The likely election re- 
sult and the strength of ster- 
ling, both of which have 
encouraged foreign buying, ex- 
plain this. 

But whether the market will 


London 


continue to make strong pro- 
gress over the next few weeks 
is another matter. Xf history 
is any guide, it may well do so. 
The announcements of the 
1979 and 1983 election dates 
were accompanied by an initial 
dip in the market, followed by 
a healthy run up to polling day. 
Id 1983, however — another 
year in which a Tory victory 
seemed a racing certainty — 
the market reacted downwards 
in the immediate aftermath 
(and anti-climax) of the Con- 
servative win. The same might 
happen again if Mrs Thatcher 
were to eo for June and be 
returned for a third term. 

But for the moment, at least, 
euphoria is the order of the 
day, a mood reflected in the 
extraordinary public enthu- 
siasm this week for the latest 
privatisation offering, the offer- 
for-sale of Rolls-Royce, the aero- 
engine maker. 

This was said to be a flota- 
tion aimed at the professional 


investor rather than Mr Sid 
Public, who was courted so suc- 
cessfully by British Gas 
(though prime time television 
advertisements lauding Rolls’ 
achievements seem a curious 
way of going about this). 

In the event, a last minute 
rush of applies tons by small 
investors meant an embarras- 
sing shortage of subscription 
forms — and, even then, over- 
subscription will mean an in- 
evitable heavy rationing of 
shares. Many of the applicants 
seemed motivated by the desire 
to make a quick killing when 
dealings start They may be dis- 
appointed: initial suggestions 
were that they might be 
allocated only 200 shares each, 
which on a 30p a share 
premium might only produce a 
first-day profit of around £30 
after dealing and other costs. 

Much of this week's excite- 
ment has been concentrated in 
the retailing sector, which has 
been firm generally on the ex- 
pectations of a boost to demand 
and consumer credit from the 
interest rate cuts. 

More specifically, Maries & 
Spencer came up with figures 
for the year to March which 
were well ahead of the market’s 
expectations: pre-tax profits UP 
IS per cent to £432m, thanks to 
a good second half. It managed 
to increase its market share, 
while gross and net profits mar- 
gins also showed a healthy im- 
provement The figures gave an 
answer to critics who argued 
that Marks' major revamping 
and expansion programme — to 
cope with the threat from 
specialist retailers— might hold 
back profits. 

For tte current year, 
analysts have upgraded their 
pretax profits forecasts to 


1500H 


1000< 


1984 


1985 


around £500m, helped along 
by farther margin gains, and 
Marks* in-house charge card 
scheme finally moving into 
profit. Thar puts the shares 
on a prospective p/e of about 
20, which is good value for « 
company of such proven quality 
— even though doubts must 
remain about Jits long-term 
ability to keep up its gr o wth 
rate in Britain's highly com- 
petitive high streets, or the 
prospects for its planned ex- 
pansion into the US. 

In sharp contrast to SI and S, 
furniture and electrical retailer 
Harris Queensway produced a 
very dull Get of fall-year 
figures. Pre-tax profits were 
ahead by 36 per cent at £50 Jm, 
but after stripping oat 
property gains and adjusting 
far share Issues., earnings per 
share were ahead by only 6 
per cent. 

The major problem was the 
electrical division, which Harris 
entered some years ago as a 
diversification from the stag- 
nant carpets and furniture 
market. This swung into a £7m 


loss, and will still not be profit- 
able this year, though Sir 
Philip Harris, the chairman, 
ma inrains that he Will get the 
formula right over the next 12 
months, and electricals will 
remain a very important part 
of the group. But there is some 
very strong competition out 
there, from the likes of 
Dticons, and Woolworth’-s Comet 
rfrunn, 

As it happened, the figures 
coincided with publication of 
a survey showing that Harris 
Qneensway, once one of the 

darlings of the stock market, is 
now regarded by brokers’ 
analysts as one of Britain's 
worst performing large com- 
panies. Certainly the shares, 
assuming -pre-tax profits tills 
year around £60m, do not seem 
undervalued on a prospective 
p/e of 13.5. 

Two of the current stars of 
the retailing sector are Mr 
George Davies of Next, the 
fashion, furniture and mail 
order business, and Mr Gerald 
Ratner, the youthful chairman 
of the eponymous jewellery 


gfrafri. This week they clashed, 
when Mr Davies topped by about 
£20m the recommended £300m 
bid Mr Ratner launched last 
week for Combined English 
Stores, one of the sector’s less 
exciting performers. 

Mr Ratner is mulling over bis 
next move, but to come back 
with a higher offer would 
threaten his shareholders with 
dilution. 

A week which had everything 
would not be complete without 
its share of scandal and alarums. 
The first was provided by the 
arrest of Mr Ernest Saunders, 
the former Guinness chairman, 
charged with three offences. 
The second was a spate of 
market rumours which pro- 
duced a sudden plunge in the 
share price of Ladbroke, the 
betting, hotels and properly 
group, catting Its market capi- 
talisation at one time by about 
£200m. The Stock Exchange 
is looking into the affair, amid 
dark allegations of dirty tricks. 
Amid an the euphoria, not all 
the smells are sweet. 

Martm Dickson 


Nemesis can be swift 


HIGHLIGHTS OF THE WEEK 


COMPUTER COMPANY laun- 
ches tend to have a flavour all 
of their own. The English lan- 
guage is massacred with terms 
like “ latest functionality,” a 
set of ‘‘-corporate objectives” 
enunciated which is often em- 
barrassingly banal. Confidence 
In the future is usually "un- 
bounded.” 

Nemesis, in the shape of 
harsh commercial realities, can 
sometimes be painfuly swift. 
This week another company re- 
vealed that its first year on the 
USM was due to end in dte- 
appointment 

At Fletcher Dennys Systems, 
a microcomputer systems dealer, 
the directors were confident, at 
the interim stage, that profits 
would show “considerable 
growth " during the current 
year from last year’s £403,000. 
But on Thursday the group de- 
clared that the year ended 
March 31 was likely to show a 
loss of around £500,000. 

The problem, according to 
Fletcher Dennys, was that 
public expenditure constraints 
knocked local authority orders, 
which traditionally come in the 
last quarter, by £2.5xn, “Every 
year it’s gloom and doom in 
the local authority sector, but 
ithe orders come through,” said 
chairman Keith Bull. “ Last 
year, they didn't” 

The company had increased 
Its overheads to reflect what it 
hoped would be around £11.5m 
of turnover, but the outturn, 
although 30 per cent higher 
than the previous year, was 
only £9m. Such are the com- 
pany's costs, that the missing 
turnover went straight through 
to the bottom line. 

Fletcher had tried to guaran- 
tee a sound base of Income by 
preferred purchase agreements 
with key clients, who thereby 


Dick Dennys, one of the 
original founders, who still owns 
17 per cent of the equity, is 
leaving the group, and a new 
managing director and finance 
director are to be appointed. 
Betwen 10 and 15 staff will be 
shed as part of a rationalisation 
programme. 

Keith Bull Is confident that 
things can be turned round this 
year. “We haven’t lost any 
clients and in fact we’ve gained 
some new ones," he said. “Also, 
we're only budgeting for £2m of 
local authority turnover.” But 
the company’s prospects must 
remain fragile, with gearing not 
far below 100 per cent 

. Cap el- Cure Myers, ..who 

brought Fletcher to the market 
last July, obviously did a good 
job in explaining its difficulties 
to institutional shareholders, 
because the shares closed only 
2p down at 61p on the day of 
the announcement .compared 
with the placing price of 70p. 

The news was the latest in a 
series of disappointments from 


as good as their suppliers? last 
product 

Those with good memories 
can recall slumps into losses 
at companies life Acorn. Cifer, 
Compsoft, CPS and CPU Com- 
puters. Inevitably, investors 
are now pretty waxy — the 
institutions were so un- 
impressed with the prospects 
of Orchid Technology, a US 
software company, that Phillips 
& Drew were forced to with- 
draw Its proposed January 
placing. The company eventu- 
ally joined the market in 
April 

"As an analyst Tan being 
very choosy about what I ride 
with in this sector,” said Roger 
Hardman of James CapeL 
Problems Jake those of Fletcher 
Dennys are hardly likely to 
encourage a more bullish atti- 
tude. 

However, poor performances 
have cot been confined to the 
computer sector. Marina 
Developments, the marina 
operator winch joined 4he USM 
in the same month as Fletcher 



Price 

Change 

1987 

1987 



y’day 

on week 

high 

low 


F.T. Ordinary Index 

1,658.7 

+31.8 

1,658.7 

1,3202 

Peaks on election confidence 

Assoc. Newspapers 

548 

+40 

550 

403 

Demand uncovers stock shortages 

Audio Fidelity 

Z63 

+41 

165 

72 

Firm ahead of Interim figs. 

BOC 

485 

+22 

487 

370 

Interim figures due soon 

British 

HO* 

+11 

no* 

65* 

Heavy overseas buying interest 

BP 

346 

+23 

353* 

238 

Oil prices firm/figs. Thursday 

BritoU 

284 

+41 

288* 

161 

Kletnwoct Benson buying recomjnendtn. 

Clnlf Gil 

117 

+19 

117 

49 

Analysts Visit tO mining ops. 

Combined English Stores 

402 

+42 

403 

205 

Agreed counter bid from Next 

Cook (Wdl) 

175 

-30 

269 

130 

Caterpillar situation fears 

FH Group 

880 

+22 

380 

296 

Re-ratlug since annual figures 

Fairline Boots 

283 

+20 

306 

207 

Good midterm results 

GEC 

219 

+19* 

236 

184 

Rumoured share stake building 

Ladbroke 

407 

-32 

451 

295 

Wide-ranging adverse rumours 

Markheutb Secs. 

145 

+30 

145 

46 

Expansion hopes 

Batners 

346 

-17 

375 

248 

Bid tor UJS topped by Next 

Time Products 

- 156 

+17 

162 

S3* 

Annual profits up 85 per cent. 

Trafalgar House 

377 

+28 

378 

287 

Interim flgures/recovery hopes 

United Biscuits 

313 

+25 

318 

228 

Speculation of share stake building 


Yule Catto 


476 


+48 


476 


245 


flmnm m promises further growth 


BP sets the tone 


Dennys, announced late last yHe MARKET Is pretty pleased trading profits moved ahead by muxucations skills will be put 


Junior 

Markets 


the sector. In January, Borland 
International, the US software 
house which joined the USM via 
an offer for sale last June, 
announced that its pre-tax 
profits would be lower than 
expected because of delays in 
the product development pro- 
gramme. 

Borland had joined the 
market shortly after the un- 
happy flotation of the cookie 
company Mrs Fields. Although 
its offer was oversubscribed, the 
downgrading— by house broker 
BZW — of its profits forecast in 
January caused the shares to fall 


40p in one day. Despite a 

„ - i , „ -vt recovery, they have still under- 

agree to buy a set amount of performed the market since 
equipment over a period of flotation 
time. The group largely supplies * oiaaon - 


mouth that it would miss its 
profits forecast by around 
35 per cent. Coupled with news 
that talks with a -potential 
bidder had broken down, the 
news caused the shares -to drop 
9p to lOOp the following day. 

Marina blamed delays in de- 
liveries for its shortfall; Gee 
Rosen appeared to have a more 
serious problem. The direc- 
tors of the clothing wholesaler 
and retailer yesterday reported 
the discovery of “serious short- 
ages of finished garments,” and 
are pursuing a detailed investi- 
gation. 

As a result full year profits 
were unlikely to be higher than 
the £159,000 achieved in the 
first half, compared with 
£403,000 in the previous year. 

To end on a more cheerful 
note. Sock Shop's offer for sale 
finished 52 times oversub- 
scribed. Shareholders will 


with BP at the moment, follow- less than 9 per cent, most to the test on Thursday when it 
ing the decision to buy the rest expect the company to produce unveils interim results. Protax 

about £195m compared wit’* 


of Standard Oil and good news 
from the Forties field. Analysts 
comfortably expect BP*s results 
for the first quarter to be 
stronger than Shell’s (both 
results will be out on Thursday) 
and to set the tone for the sale 
of the Government's remaining 
holding later this year. 

BP is more leveraged to the 
oil price than Shell, which has 
a greater exposure to gas, and 
will therefore show a smaller 
recovery upstream during the 
period. 

For both companies, down- 
stream profits are 


£177 .Sm in 1985/86. 

Sears* first-half problems 
were caused largely by the poor 
summer weather, which kept 
people out of the group's stores 
(and discouraged them from 
buying summer shoes). The 

Results due 
next week 


profits of £5Qm, nearly double 
last year’s £26m, will speak for 
themselves. 

But words — rather thaw 
figures — wiH face the closest 
scrutiny as an edgy market 
looks for reassurance about 
prospects for the DFS Borland 
and Ted Bates agencies. The 
loss of two clients, amounting 
to half the billings of Bates' 
William Esty division, has 
foensed attention on the future 
operating role of Bates within 
the group. Borland's in-house 
Independence is expected to 


mates span a wide range. For 
BP the range of estimates on a 
historic cost basis is £300m to 
£440m, and on a replacement 
cost basis £27 0m to £35 0m. The 
range for Shell is £560m to 
+ . £750m historic, and £4 60m to 

those who applied for 10,000 


_ stores should have benefited, in 
. _ .... anyone’s the second halt from a pick-up 

guess. Consequently, profit esti- in tourist traffic from the US mTwn,, doubts. earner 

and milder autumn weather — 


IBM products, and recently won 
approval to sell the 6150 
machine. But delays in receiving 
private contracts exacerbated 
Fletcher's problems last year. 


The underlying problem of 
the sector is that software 
companies are too frequent 
only as good as thedr last 
product; dealers are often only 


At one time stockbrokers' 
receiving only 200 One S5?JS& STEsSRES 
iSn^'oo SoSt" 1 for SEARS, the stores and foot- 


Mlid winter weather in 
ENGLISH CHINA CLAY’S 
Cornwall bastion should help 
the group to produce interim 
profits up to £39m — from 
£32m— on Thursday. 

rather lacklustre: some 7 per trS^SS^SJSdi 
cem ahead to £l55m, including SXyertSSS 


though the latter will have done 
little to boost sales of winter 
boots. 

The City is expecting GRAND 
METROPOLITAN’S interim 
figures, due on Thursday, to be 


INTEREST RATES: 

WHAT YOU SHOULD 

GET FOR YOUR MONEY 



Quoted 
rate % 

Compounded return 
fbr taxpayers at 
27% 45% 

60% 

Frequency 

of 

payment 

Tax 

(see 

notes) 

Amount 

invested 

£ 

Withdrawals 

(days) 

CLEARING BANK* 

Deposit account — 

350 

3.56 

2.68 

1.95 

monthly 

1 


0-7 

High interest cheque 

High Interest cheque 

6.00 

6.20 

6.14 

635 

4A2 

4.78 

336 

3.48 

quarterly 

tpiarterly 

1 

1 

L 000-4,999 
5,000-9,999 

0 

0 

High Interest cheque 

6.50 

666 

5.02 

3.65 

quarterly 

quarterly 

I 

10,000-49,999 

0 

High Interest cheque — 

6.70 

6.87 

508 

3.76 

I 

50,000 rain mum 

0 

BUILDING SOCIETY* 

Ordinary share — 

High interest access 

5.00 

6.75 

506 

6.75 

331 

5-09 

2.77 

3.70 

half yearly 
yearly 

1 

1 

1-250,000 

500 minimum 

0 

0 

High Interest access 

7JOO 

7.00 

527 

334 

yearly 

1 


0 

High interest access — 

730 

730 

5j65 

431 

yearly 

1 

0 

High Interest access 

7.75 

7.75 

5.34 

4^5 

yearly 

1 

1QJX10 mkihnum 

0 

90-day 

7.75 

7.90 

5.95 

433 

half yearly 

1 

500-9,999 

90 

90-day 

8.00 

836 

6.15 

4.47 

half yearly 
haH yearly 

I 

10^)00-24,999 

90 

90-day 

&2S 

8.42 

634 

4J»1 

1 

25flOO mUdmum 

90 


. *m *o«t from a Peasioi op *23 

nouoay. . - from the paper industry for 

me wrung iool wear stood in thp vpsp in . interested to c h ina clay and from road con- 

phaip Coggan jss£ & sse & s& Ks»is SSSSaS 

Courage , ove r Foste rs lag er. - - - - 

SAATCHI it SAATCHTS com- 


though the second half 
usually its best period. 


Company 


FINAL DiVIDEKOS 
Billon ■ Piicy 


British & Amsricin Film Holding* 
Cornorahenalva Financial Service*.-. 

Coaoantrie ................ 

Eureoain Ferries — — 

Ford, Martin 


Foster. John and Son 
Ganoral Accident 


NATIONAL SAVINGS 


G errand and National 

Ginvaa Group 

Grampian Television 

GT Management 

Henderson Group 

Hunting Associated 

King*] ay and Forester 

lend S ec urities 

L*e Coopsr - 

LHiey. F. J. C. 

Moclallan P. sod W. . — ... . 

Mailerwara Inf 


Investment account 

10.00 

730 

530 

4.00 

yearly 

2 

Income bonds 

... 1235 

933 

708 

532 

monthly 

2 

Deposit be ds 

. 13W 

8.94 

6.74 

4.90 

yearly 

2 

33rd issue* 

7.00 

7.00 

7.00 

7.00 

not applicable 

3 

Yearly plan - 

~ 7.00 

730 

730 

730 

not applicable 

3 

General extension 

7JQ2 

732 

7.02 

732 

quarterly 

3 


5-100,000 30 

2,000-104000 90 

100-100,000 90 

25-1/100$ 8 

20-200/fnonth 24 

3 — 8 


Bam co Oil Services — 

Run erf men, Walter 

Sears .... 


Squirrel Horn 

Stylo 

Thames Televl sioo _ 
Top Vhlus Industrie* . 
UE1 


MONEY MARKET ACCOUNTS 

Money Market Trust 

Schroder Wagg 

Provincial Trust — - 


United Friendly . — 
UTC Group 


7.04 

6.77 

7.53 


706 

6.98 

7.79 


5.40 

5.26 

5.87 


3.93 

3.83 

4.27 


half yearly 

monthly 

monthly 


2£00 nriidmom 
2)500 minimum 
1,000 nthtitnutn 


BRITISH GOVERNMENT STOCKS* 

7.75jjc Treasury 1985-88 

lOpc Treasury 1990 


INTERIM DIVIDEND . . 

Associated Energy Services — 

British Patrol Bum — . 

Once print Holdings - - 

Commercial Union — 

Diploma 


10.25pc Exchequer 1995 . 
3pc Transport 1978-88 , 
23pc Exchequer 1990. 

Index-linked 1990! 


8.14 

633 

433 

3.46 

half yearly 

4 — 

0 

834 

5.72 

3.97 

232 

half yearly 

4 — 

0 

836 

635 

430 

234 

half yearly 

4 — 

0 

630 

537 

431 

435 

half yearly 

4 — 

0 

5.98 

5J26 

4.78 

438 

utui jffdnj 

4 — 

0 

633 

5.78 

5.42 

532 

baff yearly 

2M — 

0 


* Uoyds Bank, f Halifax 90-day; immediate access for balances over £5,000. $ Special facility for extra £5,000. $ Source; Phillips and Drew. T Assumes 4 per cant 
Inflation rate. 1 Paid after deduction of composite rate tax, credited as net of basic rate tax. 2 Paid gross- 3 Tax free. 4 DMtfends paid af t er deduction of basic rate tax. 


English China Clays 

Grand Metropolitan — 

Royal Dutch Petroleum 

Royal Insurance 

Search! end Search) 

Shall — Winn 

TMD Advertising _____ 

Trillion 

Ultramar 

Western Selection 
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xospenstan. ft Shares and rwh n Sedated to NAV to be deterntiMd- 
(ffl Loan stock. ft Suspen ded. 

PRELIMINARY RESULTS 


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Jan 

liar 

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Jan 

Dec 

Feb 

Jan 

Jan 

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& 

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Jen 

Jen 

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Jan 

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418 

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INTERIM STATEMENTS 


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* Dividends are shown net pence per share, except where other- 

RIGHTS ISSUES 

* “**“*>» ^ 1-oe, S.3B 

^»°*^6 etok r--Turaite£Samti ir oagha<mie^BMhieerigtoaiiatteat 


OFFERS FOR SALE, PLACINGS AND 
INTRODUCTIONS 

Otyvisien— To raise £2.«m, through * placing of fiafon shares at Bfip. 
E **LV**S“ W **T' to bold an after Tor sale by tenderof 



FOREIGN 

EXCHANGE 

The Financial Times proposes to 
publish its annual Survey on 
Foreign Exchange on 

JUNE 2 

Among the subjects reviewed will be: 

• The Economic Policy Ce-tmUnatfon 

• liberalisation of Mwrhrtfr 

• The Dollar 

• The BUS and defence of parities 

S M ^“ Cy Brokers 

• The Cozpwate Treasurer 

For more information regarding advertising in tW 
Survey ana, a copy of the synopsis contact : 

David Reed 
Financial Times Ltd 
Bracken House 
10 Cannon Street 
London EC4P 4BY 

Tel: 01-248 8000, extn 3481 
Telex: 885033 















"■ -' v , 



financial Times Saturday May. 9 1987 


WEEKEND FT EH 


MARKETS 




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; 




Optimism is intact 


Dow Jones 
Industrial Average 


AS THE dost settles efter last 
month’s upheavals in lie US 
bond market; and tie Japanese 
insurance companies come duti- 
fully marching back with their 
bids lor :. long-term. Treasury 
paper, it is beginning to look 
as if the whole episode was a 
storm in a. teacup— at least from 
the equity investor’s viewpoint 

The stock/, market’s per- 
formance- this week has brought 
the Dow; - Jones' Industrial 

Average to Within 3- per cent 
of its record close. of 2405.05 on 
April 6. . And it -is. becoming 
clear that equity investors have 
viewed the large and poten- 
tially distressing rise in- -US 
interest rate's as an opportunity 
to hunt, for' bargains, rather 
than a signal to sell; 

In other words, the optuzusm' 
which has powered -the “bull 
market of a- lifetime" remains 
intact. Indeed; the sentiment 
would soon turn even more 
aggressively euphoric, as it 
becomes' apparent how easily 
the bull market has survived its 
biggest ever t est 

Its biggest ever test? A few 
months ago that would have 
sounded like a plausible des- 
-crlptiOQ .of the biggest jump in 
long-term interest rates since 
early- 1080. These days - such 
trifles may. seem relatively 
unimportant; as corporate earn- 
ings surge - - ahead -of analysts' 
expectations. Nevertheless, for 


ON MONDAY British Petro- 
leum will leant whether it has 
been able to . placer a stupen- 
dously large bet that the oil 
price has now stabilised and 
will remain at an average of 
$18 or more for the next few 
years. ' 

The bet, of course, is its 
$7.6bn bid for the 45 per cent - 
- of Standard OiLof the US which 
it does- not: already own. It is 
now widely expected that lor 
the closing date on Monday, BP 
will have gained the 80 per cent 
acceptances -it needs in ■ the. 
second largest purchase ever 
made on the -world stock mar- 
kets. 

- Although BP has good long 
term corporate and strategic 
reasons for wanting to pull 
Standard closer to its- bosom, 
the timing of the offer was ■ 
determined to a large extent by 
the British company’s altered 
perception of the oil market. . 

After., all,— BP could; have 
bought the rest of Standard for 
a lot less money if it had moved 
fast in September, when the 
US company’s share price -was 
down to $55 compared with the 
$70 which formed the basis of 
BP's initial 'offer last month. - 

Why did BP wait so 'long? 
Why did the mighty Exxon 


a .market whose motive force 
was almost universally per- 
..cehred as being rising valua- 
tions, rather than - rising 
earnings, it is hard to imagine 
a bigger test than the 12 point 
drop in bond prices which has 
occurred since late March. 

Assuming, thi»n that higher 
interest rates could, under 
different, circumstances, ha ve 

Wall Street 


dealt a mortal blow tc equity 
investment, what conclusions 
can be drawn ' from Wall 
Street's remarkable resilience 
in the last few weeks? 

. To the unreconstructed 
sceptic, the answer is obvious. 
Hie next few months will bring 
exceptional short-term risks and 
opportunities on Wall Street. 
There is inwM«iny confidence 
building up again among in- 
vestors. As prices overcome 
successive challenges such as the 
the recent jump in interest 
rates, that confidence win turn 
into complacency. The classic 
prerequisites will then finally 
he in place for the phase which 
comes at the end of nearly 
every buH market In that final 
phase the markets volatility 
will tend to become extreme 
and there will be large profits 
to be made on both the buy 
side and the sell side— but only 


for the fleet-footed investor. 

For those of a less sceptical 
cast of mind, however, two 
other theories are worth con- 
sidering. The first is simply 
that the bond market, in its 
panic about the dollar and 
Japanese inflows, may have 
misunderstood the future. At 
a yield of 8.7 per cent, 30-year 
Treasury bonds may soon start 
looking attractive again in an 
.economy where inflation re- 
mains relatively subdued. They 
could become irresistibly 
attractive if Japan and Ger- 
many are forced to go on lower- 
ing their interest rates in order 
to defend their export indus- 
tries from the ravages of the 
falling dollar. 

The second argument, which 
has already been suggested, is 
simply that the market’s (hiv- 
ing force has changed from 
higher valuations to higher 
earnings. Valuation figures, 
such as price-earnings ratios, 
ar e generally supposed to be 
closely linked to interest rates. 
Lower -interest rates reduce the 
attractiveness of bolding bonds, 
-and thus persuade investors to 
accept higher price-earnings 
ratios on their stock portfolios. 
This has been the primary 
explanation of tbe remarkable 
rise ' in stock prices over the 
past two years: 

In tiie . last month, however, 
things have changed. The 
collapse of the dollar, while 


it has scuttled the bond market, 
has begun to do wonders for 
corporate earnings. On the 
basis of the quarterly figures 
announced over the past few 
weeks, Merrill Lynch, for 
example, is now forecasting a 
rise of 20 per cent In the 
average earnings of the Stan- 
dard & Poors 500. 

This would be the biggest 
profit gain since 1976. If such 
results were realised, then 
today’s almost unprecedented 
p/e ratio of 20 would look like 
a more conservative 16 to 17 
by this time next year. 

There is just one problem. As 
everybody knows, share prices 
tend to increase ahead of under- 


Better bets missed 


dally, while oil shares rose, be- 
fore launching its $lbn for 
Delhi’s oQ assets in Australia? 
Why did Amoco, hold baric from 
making its offer for the 
troubled Dome Petroleum in 
paiiaHa nntii a rising oil price 
made that company look, finan- 
cially side rather than termin- 
ally, ill?. And what can a smaller 
Investor learn from this global 
flexing of muscle by the 
Titans? 

. The first thing the’, small 
investor can learn is to kick 
himswif, . although .perhaps not 
quite as hard as some cor- 
porate treasurers must now be 
kicking their oil analysts. 

Some very good bargains 
have been missed. Just as BP 
might have saved a billion or 
two on -the offer for Standard, 
a smaller- UK investor who put 
bis shirt, on a spread of oil 
companies a year ago would 
have, been sitting on a capital 
gain of 75 per cent yesterday, 
according to Wood Mackenzie. 
That broker calculates that the 
oils sedtor has outperformed 


the FT AH Share Index by 31 
per cent over the last 12 
months. 

With hindsight, it is dear 
that fdw people inside the in- 
dustry predicted that Opec (the 
Organisation of Petroleum 
Exporting Countries) would be 


Resources 


able to hold its production 
cartel together as tightly as it 
has done for the then first four 
months of fie year. 

The latest figures from the 
Paris-based International 
Energy .Agency last week 
showed that stories were being 
depleted by nearly 3m barrels 
a day in March — which was 
equal to the whole- of Saudi 
Arabia’s crude production. Yet 
the oil price held remarkably 
steady, with the North Sea 
Brent price at an average of 
$18.55 during the month. This 
week, crude for June delivery 
has been trading at over $10 


NEW INTEREST RffTE 


Base Rate 

Will be reduced by 0.5% to 9% per annum 
with effect from 11th May 1987. 



t VRi ! ! I I • 




mV Midland Bank pic, 27 Poultry, London EC2P 2BX 


Interest Rate Change 


Allied Irish Banks pic announces that with effect 
from dose of business on 11th May 1987s 
its Base Rate mH be reduced from 9*6% to 9% p.a* 



TFE&4NKH3 

1987 TOP 500 

Publication Date: 1st July 1987 

The eighteenth edition of the TOP 500 will -be published in the JULY issue of 
THBBANKEH. discredit analysis and ranking of the world's 500 largest 
mortal banks and corporate treasurers throughout the world to be the most 
authoritative comparative dam published. ' • : 

-Eahc year THE BANKER has added new data to the information base which, 
combined with the previous 17-year historic performance research, provides 
the universally-accepted material necessary for inter-bank comparison. 

It is used continuously by bankers and corporate treasurers in over 135 countries 
throughout the -year.--- - " 


The information contains 


Sire by assets 
Total deposits 
Capital and Reserves 
Net interest Income - 
Pretax, earnings..- . 


Pretax earnings on assets (%) 
Pre-tax earnings on capital (%) 
Capital /Asset ratio 
Net interest on assets (56) 
Number of employees 


~ For full defrtils, contact : 

----- The Marketing Director ’ 

THE BANKER 

I 0 M 08 Oerkenwril Bead, London EC1M 5SA Telex: 23700 FWBI G. Tel: 01-251 9321 


per barrel on the New York 
Mercantile Exchange. 

These price levels are now 
fully reflected in the market 
value of most oil companies, 
and it is hard to find many 
people expecting a collapse to 
$10 or below, as happened a 
year ago. 

Opec is bolding together — 
because it stood on the edge of 
disaster last July. Oil companies 
are privately relieved; they 
seem to have reached an 
obscure consensus that it would 
be counter-productive to charge 
too hard at the occasional gaps 
In Opec’s line. And ou Monday 
the industrial world's energy 
ministers meeting at the IEA 
in Paris will quietly agree fiat 
$18 is better than $9 for fie 
medium term security of 
Western supplies. 

Opec can look forward to its 
next meeting in Vienna on 
June 25 with much more confid- 
ence than at any time last year, 
and there is even talk of push- 
ing the price above $20. 



CONFERENCE 

16&17 June. 1987 


The financial Times Is organHng 
Us second retailing conference in 
London on 16 4 17 June. The 
conference wfltiook at the 
importance of marketing, 

, manufacturing andc&sOttxdion 
in a rapkfly changing environment 
New concepts in retaing such as 
armchair shopping and 
out-of-town centres wffl also be 
examined and speakers from 
Europe and the US w« assess the 
International scene. Speakers 
will include: 

Mr ASstair Grant 

Deputy Ctoknan a ChW Encutfw 

Aiyyl Group 

Ur Alan Ripley 
Director, Ratal Bvfetonal Brand 
The Boots ComoenyFlC 
Managing Dtoctoc CWctoraVtorfdUl 

■ 1, ll-lnnbn TUikUenn 

WT MVvvflii n«Maon 

ChW Executive 
Woohwrtfaptc 

Ifca Anita Rodcfick 

Manaoina Director 

The Botjy Shop WemaJionat PIC 

MrGutto Venturing 

Bract* Marketing and CommunfcaBon 

Benetton Group 

MrKarlEBer 

Chairman of the Board 
The OrcieK Corporation 

Mr Fredrie Craig 

Managing Director DMribuSon 
Chrtattan Sehman Food Services 
Europe Limited 

Mr Anthony J McCann 



Director W8 (feemrOh PLC 
gmrwrai. The DWrttutfr s ifedei 
Economic Dwtopnunt CouimWaa 

FINANCIAL TIMES 


If 


) ; iii n i h iiaAi y 


lying improvements in cor- 
porate profits. The current level 
of stock prices already discounts 
a powerful surge in profits 
from US industry. Even if there 
is a 20 per cent jump in profits 
to look forward to this year, 
there may have to be some 

further positive surprises In 
store, if fie market is to sustain 
a price-earnings level of 16 or 
more in 1988 and beyond. 

MONDAY 2286.22 + 5.82 

TUESDAY 2338.07 +51.85 

WEDNESDAY 2342.19 + 4.12 

THURSDAY 2334^6 - 7.53 

Anatole Kaletsky 


Clearly — for those who be- 
lieve fiat prices will go on up 
— BP, with its large reserves 
in the North Sea, and Standard’s 
in Alaska, must still be a good 
buy. Similarly. Britoil Enter- 
prise Oil and smaller UK inde- 
pendents like Clyde Petroleum 
are all strongly geared to a rise 
in fie oil price. First quarter 
results due from Shell and BP 
this week will probably show a 
fairly large fall in replacement 
cost profits compared with a 
year ago, but this also under- 
lines fie fundamental impor- 
tance of a high oil price even to 
the large integrated majors. 

The big refining and market- 
ing profits at tbe beginning of 
last year were a temporary con- 
sequence of tbe fact fiat pro- 
duct prices had not caught up 
wifi fie fall in crude prices. 

So, although fie major oil 
companies managed to weather 
last year's storms with remark- 
ably little damage to their 
profit line, it is not a trick they 
are likely to be able to repeat. 
For steady profits they need 
fie success of Opec. Some at 
least think they will get it. 

Max WiDdnson 


Prices 
likely 
to firm 


JUST OVER a year ago. West 
German stock markets were at 
their peak. But today, those 
who wondered how long it 
would take for prices to return 
to their record levels are still 
wondering. 

In recent weeks fie market 
has oscillated somewhere 
between a mood of pessimism 
induced by an irrepressibly 
strong D-mark and occasional 
outbreaks of optimism caused 
by favourable items of company 
news. 

“It’s a no-stoiy market," 
reckons Michael Zapf, head of 
Bank in Liechtenstein (Frank- 
furt). "I don't think anybody 
is so frightfully enthusiastic 
about Germany as to sun on 
a buying spree, but I see some 
solidity in present prices. I 
don’t see it collapsing, but I 
don't see it rising much either." 

Earlier this year German 
share prices tumbled, as inves- 
tors became more aware of fie 
shocks that Germany's power- 
ful currency was likely to deal 
out to exporters. That wave of 
gloom has mostly evaporated, 
however, and the Commerzbank 
index (around 1.800 this week) 
is 12 per cent down on the end- 
1986 level, having been 20 per 
cent lower in mid-March. 

The all-time high was 2,279 
in the middle of April last year, 
with an acceleration in fie pre- 
vious four years that had put 
investors on a winning streak 
after fie sluggish performance 
of fie past. In 1985, fie mar- 
ket gained by as much as 75 per 
cent 

Those heady days are long 
gone. Foreign buyers, who pre- 
viously took to fie market in a 
big way, have become much 
more hesitant though they are 
still playing a dominant role. 
With share prices still high, and 
with guaranteed currency gains 
from fie rise in the D-mark, 
many people eagerly took 
profits in the early months of 
1987. 

An intriguing question just 
now is whether tbe Japanese, 
awash with liquidity, will leap 
into the German market in a 
big way. They have certainly 
been buyers lately, but not on 
a big enough scale to propel fie 
.German market — — dominated 
by Frankfurt and DUsseldorf, 


On and after 8th May, 1987 
Standard Chartered Bank's Base Rate 
for lending is being decreased from 
9.50% to 9.00% 

Deposit Rates are Gro “ tam “ lrmm 



Interest paid half-yearly 


Standard Chartered Bank 

Head Office 38 Bishopsgate. London EC2N 4DE 
Tel. 01-280 7500 Telex 885951 



Coutts &. Co. announce that their 
Base Rate is reduced from 
9.50% to 9.00% per annum with effect 
from the 11th May, 1987 
until further notice. 

AQ facilities (including regulated consumer credit agreements) 

with 8 ate linked ® Coum Base Race will be varied accoidingly. 

The Deposit Rates on monies subject 
to seven days* notice of withdrawal 
are as follows:- 

4.50% per annum Gross* 

3.00% per annum Net (the Gross Equivalent 
of which is 4. 11% per annum to 
a basic rate tax payer) . 

Rates are subject to variation and 
interest is paid half-yearly in 
June and December. 

•Nat ordinarily available to individuals who are U.K. residents 

440 Strand, London, WC2R 0QS 


21 


iimirjiiiii! 
iiiiiimiiiiilH 
imiiiiiiiiinii 


but also with six other bourses 
— to new highs. 

Currently, says Zapf, “ the 
Japanese are just feeling their 
way around in a professional 
manner, testing the waters and 
gaining experience." Since most 
trading is concentrated in only 
about 10 major shares like 
Daimler, Siemens and Deutsche 
Bank, fie German market 
clearly lacks the scope of, say, 
London or New York. 

Mrs Margot Schoenen, chief 
analyst at Westdeutsche Landes- 
bank. says: “ You've got to con- 
sider the mentality of the Japa- 
nese. If the market is listless, 
as it is now, then they don't 
feel forced to come. They will 


Frankfurt 


come when there’ is a big up- 
wards trend." 

Watching to see how fie 
Japanese will jump has become 
quite a pastime among bourse 
experts. In the meantime, they 
have had to content themselves 
with making sense of the latest 
batches of company results and 
economic indicators. 

On the broad economic front, 
there seems little doubt fiat 
growth has slowed down. As for 
the companies, results have 
been mixed. Nixdorf. fie 
thrusting computer concern, 
surprised no one by turning in 
yet another set of upbeat re- 
sults and forecasting more pro- 
gress. Continental Gummi- 
Werke, the tyre and rubber 
company, is raising its dividend 
after higher profits, so is Kauf- 
hof, the store company which 
improved its 1986 result con- 
siderably, and is likely soon 
to be controlled by the Metro 
cash-and-carry concern. 

In electronics, Siemens, not 


overly cheerful early in the 
year, turned in an improved 
first-half result for 19S6-87. 
Hoeciisi, of tbe chemical giant*, 
reported a higher first quarter 
result, but warned that 1987 
would be tough. 

Surprisingly resilient have 
been Volkswagen shares, which 
took some nasty knocks in 3986 
through losses in Brazil and 
Spain, and its sensational cur- 
rency fraud. This week, the 
share has been above DM 380 
after dropping to around DM 
320 when the fraud was ad- 
mitted by VW two months ago. 

In the market overall. Michael 
Eisenblactter, an executive with 
Chase Bank in Frankfurt, be- 
lieves that enough is still hap- 
pening to keep investors' 
imaginations stimulated. "I 
expect prices to firm soon — 
there won't be a boom, but if 
they go in any direction, it will 
be up." 

On the positive side, the 
threat of strikes in the engi- 
neering and car industries has 
been removed by the latest 
hours - and - wages deal. This 
year’s elections also confirmed 
the pro-business centre-right 
coalition in office. But the West 
German government has not yvt 
kept its promise to drop the 
Stock Exchange turnover tax, 
which has caused much busi- 
ness to shift elsewhere. 

If German money market 
rates drift down, as speculation 
suggests, share prices could re- 
ceive a new impulse. Hendrik 
Daniels, a capital markets execu- 
tive with Bayerische Vereins- 
bank, is mildly hopeful about 
fie outlook. “Compared with 
other countries, the German 
fundamentals are not bad." 
Whether fiat is enough to un- 
leash a new bull phase remains 
to been seen. 

Andrew Fisher 



Barclays Bank 
Base Rate 

Barclays Bank PLC and 
Barclays Bank Trust 
Company Limited 
announce that with effect 
from 11th May 1987 
their Base Rate will be 
decreased from 
9V 2 % to 9% 


BARCLAYS 


Reg. Office 54 Lombard Sl. EC3P 3AH. Res- No's 1036167 and 920880. 




Bank of Scotland 
Base Rate 

Bank of Scotland 
announces that, with effect 

from 11th May 1987 
its Base Rate will be 
decreased from 
9.50 % per annum 
to 9.00% per annum. 


mmzm 


A FRIEND FORT. IFF. 












1 


\ 


1 



IV WEEKEND FT 


Financial Times Saturday May 9 19S7 


t . . 

' i ' : 


• FINANCE &THE FAMILY- 



of the East 


SPIRIT of the East Is the 
unusual Dame chosen by 
Henderson for its latest unit 
trust launch an Monday. As 
the title suggests, the fund 
will invest in Far Eastern 
markets in line with the recent 
trend to move into the expand- 
ing economies of the Pacific 
region. 

However, Henderson is adopt- 
ing a slightly different 
approach. The 11 countries 
chosen for investment . include 
India, which is not normally 
viewed as being in the Far East. 
And. unlike many funds seeking 
to exploit the region, Hender- 
son will include Japan. 

Another different feature is 
that there are two fund 
managers — Jill Smith and Iain 
Clark, both of whom have had 
considerable experience in run- 
ning Far East unit trusts. 

It is claimed that two mana- 
gers are needed to deal with a 
portfolio that covers 10 different 
markets (although, in the case 
of India and South Korea, the 
investments will be made by 
way of the specialised trusts 
that are the only way in at pre- 
sent). 



Jill Smith, Henderson 
manager 

Although Henderson already 
has several specialised trusts for 
individual Far East marketB, it 
feels that investors will like the 


idea of being able to switch 
to the best opportunities avail- 
able in tbe region without 
having to build up detailed 
knowledge of local industries 
and markets. 

Jill Smith, says a definite de- 
cision has been taken not to in- 
clude the Philippines in the 
initial portfolio because of tbe 
risk involved. The main invest- 
ments will be in Australia (2a 
per cent}, Ms 1 ay si a-S in gap ore 
(25), Korea (15), Japan (10), 
Thailand (10). and Hong Kong 
(5), with 2.5 each in India, 
Taiwan a nd New Zealand 
(mainly bonds). 

Also unusually for a Far East 
fund, the estimated yield is 3 
per cent, taking advantage of 
countries like New Zealand 
where income can be earned. 
There will be a fixed price of 
50p a unit until May 27. 

Minimum investment is £500, 
or a £25 monthly savings plan. 
Management charges are not 
cheap, with an initial front load 
of 5 J2 per cent and an annual 
fee of 1.25 per cent. 

John Edwards 




e the taxman 


John Eduards finds a 
bond scheme which 
pays interest gross 


NOBODY LIKES paying tax, 
especially if you can't claim it 
back. So Lloyds Bank has 
come up with what it calls the 
Bond option, which pays interest 
gross, as part of their latest 
package to appeal to savers, 
especially those with building 
society accounts. 

Normally composite rate tax 
(CRT) is deducted automatically 
from the interest paid on both 
bank and building society 
accounts. But interest can be 
paid gross under the Lloyds 


bond scheme providing you 
deposit a minimum of £50,000 
on a three-month revolving fixed 
term basis, with no withdrawals 
or additional credits allowed 
during the fixed term. 

Since you are still liable to 
pay tax, at a higher rate, on 
the interest, the Bond option 
should only appeal to non- 
taxpayers, like expatriates, or 
those with cash flow problems. 
But at least it does give an 
alternative, and an attractive 
rate of interest at 0.5 per cent 
gross (10.27 compounded annual 
rate). 

However, Lloyds is also going 
for tbe normal tax-paying build, 
ing society investor with the 
introduction of an Investment 
Account offering higher Interest 
rates than both its current extra 


Europe opportunity 


THE PERFORMANCE of the 
German and Swiss markets may 
have been a bit of a disaster 
for investors so far this year. 
But Royal London thinks that 
the fundamentals in Europe are 
sufficiently sound for- it to 
launch a European Growth 
Trust. 

Units in the new fund will be 
offered at a fixed price of 50p 
between May 9 and 29. less a 
discount of 2 per cent for 
amounts over £5,000 or 1 per 
cent for smaller investments. 


Initially, the fund will con- 
centrate on the French, Italian 
and Spanish markets, but the 
portfolio will be switched when 
it is considered the time is right 
to other European exchanges. 

The unit trust arm of Royal 
London Mutual has grown 
rapidly since its Introduction in 
1981 with the value of funds 
managed nearly doubling last 
year to £85m. So far seven of its 
eight unit trusts are among the 
top performers in their 
individual sectors over the past 
one or three years. 


interest and high interest 
cheque accounts. 

In return for the higher rate, 
investors normally have to give 
three months' notice of any 
withdrawals. 

But if you want immediate 
access to your funds you can do 
so by paying 50p per month of 
notice not given for each £100 
withdrawn. Quite an expensive 
penalty. 

Minimum deposit for the 
investment account is £5,000 
on which the gross interest rate 
is 850 per cent, equivalent to 
6.90 net after CRT is deducted. 
The rate goes to 9 per cent 
(750) for deposits between 
£10,000 and £50,000 and 950 
(7.50) above that 

A new tier added to the High 
Interest Cheque Account for 
deposits over £50,000 pays 
8.50 (6.70) per cent— 1 per cent 
less than the Investment 
Account 

In another move to appeal 
to the High Street customer 
Lloyds is offering between May 
5 and the end of tbe year, a 
series of special deals arranged 
with retailers and service com- 
panies to borrowers taking out 
personal loans. 

The borrower is given tbe 
choice of one of three booklets 
of discount . vouchers grouped 
under the type of discount 
being offered — Carstretcber, 
Homestretcber and Leisure- 
stretcher. No marks for origi- 
nality — remember the Pound- 
stretcher campaign by British 
Airways? — but Lloyds reckon 
up to £200 can be saved on a 
range of products and services. 


School 
fees up 


MORE FAMILIES are having 
their children educated pri- 
vately, according to the latest 
survey from ISIS— the Inde- 
pendent Schools Information 
Service. 

The number of pupils at 
independent schools at the 
beginning of this year was 22 
per cent up on the previous year 
to 430,000 in the schools 
included in the survey. 

Tbe figures show that more 
parents are having their 
daughters educated privately— 
the ending of sex discrimination 
in the family or fear of tbe free 
and easy co-education State 
schools? 

Whatever the reason, this 
news in itself sounds pleasant 
to the growing number of 
school fee specialists now In 
the market But other features 
in the survey sound even better 
for them. 

Fees last year rose by an 
average of 11 per cent, com- 
pared with 9 per cent the pre- 
vious year, the increase arising 
from higher teachers' salaries. 

This compares with a rise of 
3.9 per cent in the Retail Price 
Index over the same period, and 
more relevant a rise of 75 per 
cent in National Average 
Earnings. 

The message to parents is 
dear. Fees are rising faster 
than the average gross earnings 
and in addition have to be paid 
out of taxed income. 

The conclusion is obvious. 
Parents considering having their 
children educated privately 
must plan well in advance. 

Besides the jump in teachers’ 
salaries — up 5.5 per cent— 
another reason for this rise in 
school fees, well above inflation, 
is the high cost of maintaining 
and improving standards. 
Schools covered in tile survey 
spent a total of £125m last year 
on new buildings and equipment 
compared with £108m in the 
previous year. The amount 
spent per pupil rose from £257 
to £289. 

However, parents can take 
comfort from the fact that 
schools are providing- consider- 
able assistance in helping 
parents with fees. The survey 
shows that nearly 43,509 pupils 
— over 10 per cent— received 
some form of help with fees 
from the schools. 

E. S. 



MEDDLE AGE SPREAD, THE SIGN OF A HE ALTHY INVESTOR 


Putting on weight In middle age may not eam your doctor's 
approval but in investment terms it could be a sign of robust 
health. 

Take the Robeco Group. 

Having been around for 58 years we're undeniably middle- 
aged. And as for putting on weight, funds under manage- 
ment now exceed £9 billion, h makes 
us die world's largest independent 
investment group outside the United 
States, (n UK terms, the asset value of 
the Robeco Group exceeds that of the 
20 leading UK investment trusts. 

But it’s our spread that really makes 
the Robeco Group stand out from the 
crowd. 

The Robeco Group's funds are invest- 
ed in over three hundred blue chip 
shares in twenty countries. Investors 
can buy and sell the Hinds' own 
shares on 19 of the world's stock exchanges or direct, 
through the Robeco Geneva Account facility. 

As for performance, the five-year record* speaks for itself. 
Robeco - up 322%* The Group's original investment fond 
and still very much the flagship. Robeco invests in a truly 
international blue chip equities portfolio designed to pro- 
duce a balance between income and capital growth. 
Rolinco - up 260%* Established in 1965. Invests in a wide 
spread of international equities with the emphasis on capital 
growth. 


Rorento - up 162%* An international fixed-interest secu- 
rities accumulator fond, established in 1974. 

Rodamco - up 133%* A property fond established in 1979 
and invested worldwide in commercial property, such as 
shopping centres and officB buildings. Rodamco seeks 
income combined with a reasonable capital appreciation. 


DISTRIBUTOR STATUS FOR ROUNCQ 
RoBnco has been granted t E s tri bnta r states for 
the accounting year to 31st August 1966. 
Assuming RoBnco wH continue to quaSfy, this 
moans that gains on a i fisg os nl of shares 
acquired after 31st August 1985 attract capital 

gains tax and not income tax. 

RoBnco shams gamed 77% in value in sterling 
farms over the 6 months to 28th February 1967. 
BoSncoi financial year now ctwraspawfe wifft 
the calendar year: 

For the latest Robco Interim Report and 
explanatory bmchura please return the coupon. 


Between them, the four Robeco 
Group funds cover the complete 
spread of investment markets. For the 
UK investor they offer distinct advan- 
tages over other types of investment 
To start with, Robeco offers an excel- 
lent prospect of capital growth, unlike 
a building society. 

Unlike an investment trust, the 
Group's shares do not trade at a dis- 
count to asset value. The share price 
always reflects the underlying value 
of the assets in the portfolio. 

And unlike a unit trust; the funds and their managers are 
wholly owned by the shareholders. All revenues go to them, 
less annual operational costs of only 0.3 per cent of tire 
value of funds under management There is no bid/offer 
price spread. 

Some final points to note. 

Being Dutch we're used to working hard and expect our 
investments to do likewise. And located as we are offshore 
to the world's major financial centres we can be truly objec- 
tive in our search for investment opportunities. 

• At the end erf February 7S87, In term* of staffing, stl Income reinvested. 


Er/c Short listens to abuse and fury at Sun Life 

Boardroom rivals slug it out 


I Robeco NV. PO Box 973, 3000 AZ. ROTTERDAM, Holland 

I Mr/Mrs/Miss — - 

® Address — 

I 




WOWgaCmMSOHtim 


Country , 
23050 


.Postcode. 



I 

1. 


Europe's LeatSng Investment House 


ELECTION fever is in tbe air. 
This week we have had the 
local authority elections. Over 
the weekend it is widely ex- 
pected that Mrs Thatcher will 
announce the date of the 
general election- And next 
Wednesday, Sun Life share- 
holders vote on the composition 
of their board. 

Normally, the annual general 
meetings of Sun Life Assurance 
Society are staid affars- con- 
ducted with decorum as befits a 
long-established life group. 
Such is the interest shown by 
shareholders that it is normally 
held in the boardroom at the 
group's headquarters at 107 
Cheapside in tbe City of 
London. 

This years, however, it is 
different. There is to ho a con- 
tested vote for places on the 
board and candidates have been 
actively wooing shareholders 
for their votes. 

On one side there is Trans- 
Atlantic Insurance Holdings, 
the largest shareholder in Sun 
Life, with 25.7 per cent of tbe 
equity, putting up three candi- 
dates for the board — Michael 
Middlemas, its managing direc- 
tor and two other top execu- 
tives. 



Peter Grant: crusader 

On the other side is the pre- 
sent board of Sun Life under 
the chair manship of merchant 
banker Peter Grant who him- 
self is up for re-election to the 
board under the rotation sys- 
tem. 

The board Is totally opposed 
to the election of the three 
candidates from TransAtlantic. 
while TransAtlantic has hinted 


that It may find it difficult to 
support tho re-election of Peter 

G As'in all elections, the candi- 
dates have been busy (ending 
oat election addresses to voters 
and giving their side of the 
story to tbe press. 

Both aides have been canvas- 
sing Institutional shareholders 
but are relying on letters to 
reach Individual shareholders. 

These election communica- 
tions put far more emphasis on 
attacking the other side than 
in spelling out and justifying 
their own case. 

This saga started years ago 
when Donald Gordon, the chair- 
man and chief executive of 
Liberty Life of South Africa 
acquired a substantial minority 
stake in Sun Life, through 
TransAtlantic, then a subsidiary 
of Liberty Life. 

Since then he has en- 
deavoured to participate in the 
affairs of Sun Life by exercis- 
ing control through a minority 
holding. 

However, all bts overtures 
were blocked by Sun Life, so 
now be is endeavouring to get 
directly into the boardroom by 
putting up three candidates. Be 
has prepared the way by re- 


ducing his holding in Trans- 
Atlantic to 48 per cent, though 
he still remains chairman. 

The case put forward by 

TransAtlantic ia that iha three 
candidates have 
eace which can provide a post 
tlve contribution » ite *u$u« 
development of the bun Lift 

Group. However, their exper* 
cnee seems to have been in 
other fields than life assurance 
Perhaps wider experience u. 
what la needed but this Ja not 
explained by TrensAtiMtio. 

Sun Life admits that it may 
need to link up with another 
group — any group except 
Liberty Life— to compote la the 
new financial service environ- 

m However. Peter Grant, who 
has made this selection issue a 
personal crusade, b*5 » far 
failed to get to tho preliminary 
talks stage with anyone- 

At the annual mectiof, trans- 
ferred to nearby Goldsmiths 
Hall, shareholders face a staple 
choice. Will the future of Sun 
Life be better with Liberty or 
without It? They must make 
each side speU out their views 
clearly at the meeting and not 
just knock the opposition. 


Property fund offer Bigger 

shares 


MIM Britannia, which has £lbn 
of funds under management, is 
offering the MIM Britannia 
Property Shares Trust (PST) 
this weekend. The PST fund 
stood at £30-3m at tbe 
beginning of April. 

The fund has performed 
welL Over the three years to 
May 1 1987 it showed a gain 
of 159.6 per cent against rises 
of 77.4 per cent for the FT 
Actuaries Property index. 

Property shares, of course, 
have been underperforming the 
market as a whole— on and off 
but mostly off— since 1981. 
However, the FT All-Share gain 
of S3 per cent over the three 
year period still leaves tbe PST 
management with a comfortable 
margin in its favour. 

The management — In toe 
shape of fund manager Adrian 
Brown — notes that toe FT 
Actuaries Property Index is 
still dominated by traditional 
property investment companies 


—the top two being Land 
Securities and MEPC — which 
have underperformed over a 
long period. 

His fund’s money, he says, is 
in development and trading 
orientated property companies, 
actively managed operations 
like Arlington of business park 
fame, or Tony Clegg's Mount- 
leigh, which has just made a 
successful bid fbr Stockley. 

On toe new offer, the 
managers say that rental values 
are reaching record heights in 
the City of London. This may 
be a lead indicator for the 
property market, but Adrian 
Brown says that London, with 
its big buildings, high rents and 
high values, also accounts for 
a good proportion of the deals 
being done fay active manage- 
ments at the moment 

MTtf Brittania says that 
developers are speaking of 
unprecedented demand and that 
toe case for investing in 


property shares “has never 
been better. 1 * Further cuts in 
interest rates, it forecasts, are 
likely to add an extra boost 

MTM Britannia says that, in 
1986, average rental increases 
were over 9 per cent, or twice 
the rate of inflation. In 1987 
rents are expected to rise 
12 per cent, or three times the 
inflation rate. 

The yield on direct property 
investment it adds, is also very 
promising at 75 per cent °r 
more than twice the 3.5 per 
cent yield on UK equities. 

As a guide for Investors, MIM 
Britannia has produced a 
brochure reviewing the oppor- 
tunities in the property sector*. 
A free copy Is available on 
request 

•HOC Britannia Unit Trust 
Managers, 74-78 Finsbury -Pave- 
ment London EC2A tJJK 

William Cochrane 


John Edwards reports 
on a new way to 
build up a portfolio 


Learn the facts of life 


BAFFLED by the stock market ? 
Not sure whether you are paying 
too much tax? Want to know 
all about unit and investment 
trusts? 

Finding the answer should be 
no problem as the financial 
guide book season is with us. 
Since nearly 20 per cent of the 
UK population owns shares, 
publishers evidently have de- 
cided the time is ripe to launch 
a variety of literature catering 
for the growing public aware- 
ness of financial matters. 

One offering likely to be popu- 
lar is what the Consumers 
Association describes as an 
“action kit” from Which deal- 
ing with Buying, Selling and 
Owning Shares. It seeks to 
answer the basic question — 
why invest in shares 7 

As usual with Which? publi- 
cations, it gives practical advice 
that is easy to understand. There 
is guidance on choosing a stock- 
broker, bank or building 
society to act on your behalf, 
including a list of those willing 
to take on new private clients. 

Also in toe kit are share re- 
cord sheets, a price scalecard, a 
“ growthmeter,” and varous 
other share-dealing aids. Priced 
at £5.95, Buying, Selling and 
Owning Shares Is available from 
tile Consumers Association sub- 
scription department, PO Box 
44, Hertford, SG14 1SH. 

The Prudential Book of 
Money offers practical advice 
mi a much wider range of per- 
sona] finance topics, with 
articles by a team of financial 
journalists. Sufficiently topical 
to include the 1987 Budget pro- 
posals, it Is priced at £350p but 
is free until May 31 if you invest 
directly in Holbom unit trusts 
or a Prudential persoanl equity 
plan. 

Published by Rosters, 60 Wel- 
beck Street, London Wl, it is 
available from W. H. Smith and 
other bookshops. 

Douglas Moffit, financial 


for LBC Radio, in association 
with the - London Stock 
Exchange, it is priced at £356. 

For readers seeking more 
specialised advice, there is 
plenty of choice. 

• Homeowners Guide, spon- 
sored by the Anglia Building 
Society and edited by Rosemary 
Burr, uses six journalists (in- 
cluding Lucia van der Post of 
the Financial Times), and 
covers all stages of buying, 
selling and living in a home 
— includes sections on decora- 
tion and DIY improvements and 
costs £555 from W. H. Smith 
and bookshops, or £6.45 direct 
from toe publisher, Rosters. 

• Divorce Guide, by London 
solicitor G a miens, concentrates 
on the financial aspects of 
divorce, including the recent 
House of Lords judgment on 
school fees and payments to 
children. It is available free 
(provided a stamped, self- 
addressed envelope of A4 size 
is enclosed) from Gamlens, 3-4, 


Stone Buildings, Lincoln’s Inn, 
FC2A 3XS. 


London WC2A 

• Tour Rights 1907 , a guide 
to money benefits fbr retired 
people, is published tv Age 
Concern, which claims that 
more than lm people miss out 
on benefits by not claiming. It 
costs 90p from booksellers, 
local Age Concern organisa- 
tions, or direct from the 
Marketing Dept, Age Concern 
England. 60 Pitcairn Rd, 
Mitcham, Surrey CR 43LL. 

• Taxation for Farmers; Estate 
Planning. Available free from 
local offices of chartered 
accountant Hodgson Impey, or 
from . Ian Hudson, Beaver 
House, Butcher Row, Beverley, 
North Humberside HU17 8AA. 
m Unit Trust Year Book 1987. 
Edited by Christine Stopp. 
Mail order only from Market- 
ing Dept, FT Business Inform- 
ation, 102 Clerkenwell Rd, 
London EC1M 5SA. Price £24 
UK; £29 (340) overseas. 

J. E. 


EAGLE STAR is launching a 
Personal Equity Plan (PEP) 
with a genuine difference. It 
is specifically designed to 
enable a company’s existing 
shareholders to Increase their 
holdings and take advantage of 
the tax-free concessions offered 
by PEP. 

It also offers a cheap way of 
buying the shares. Under the 
schema new shares w|U be 
issued by BAT rather than 
buying .existing shares to the 
market. So there will be no 
dealing costs or bid-offer 
spread, because investors will 
receive shares at mid-market 
prices. 

A brochure explaining details 
of the Equity Plus Plan has 
been sent to all the group’s UK 
shareholders and will be put to 
toe annual general meeting for 
approval on May 28. 

The minimum subscription 
will be £500, going up in 
tranches of £500 to £2.000 and 
then the maximum of £2,400. 
Intial charge to enter the plan 
is £34.50 p — which is expensive 
for toe minimum subscription 
on a percentage basis (about 7 
per cent), but cheap for the 
m aximum (about 1.5). There 
is, in addition, an annual man- 
agement charge of one per cent 
of the value of the shares, 
which will be debited against 
cash held in the fund. 

Eagle Star Trust Company, 
which is a licensed dealer in 
securi ties and approved as a 
PEP plan manager by the 
Inland Revenue, plans Co 
design and administer similar 
PEP plans for other publicly 
quoted companies. Other com- 
panies may, of course, decide 
to do their own scheme, but 
Eagle Star is setting a trend In 
what could be an important de- 
velopment for PEP schemes. 


editor of LBC Radio and Inde- 
pendent Radio News, has also 
managed to include tills year’s 
Budget changes in the second 
edition of his Family Money 
Book. 

This year’s edition has been 
broadened to cover the impact 
of the Big Bang and the intro- 
duction of personal eauity 
plans. Published by J- M. Dent 


CHART YOUR 
SHARES 
-to profit! 


Uni qua kit shout jou - 
HIAT TO BUT - bat MAh ratn, 
MClt TD BUT - talon trand line. 

Kl TO SELL - m jour 'otaa-lo**' , 

If or mi 'Log-scale Charting' t price 
Ultt, or to ordor, fill tho coupon hQU . 



hoi Wall MagraM. Lm* EM Faro. LesHalo, . 

(tan OS ML ftm P» 3073 «“ C» MW) 
(Hobo mi ki ftWLofr»la OorUng** prices O 
or dure km O S2H £& msIualveO 

I onckMigp Ctaw/n n*ola to Detail Ikngnont 


PHtCOte 


I — WINDSOR PROPERTY SHARES TRUST — i 

IVoperty snap 

nave 

unde 



Invest 


now. 


TITpvlofir Trtisf Managers am* TatmAfag 
their new Property Shares Trust A unit erase 

that invests exclusively in die shares of UK' 
property companies, aimi ng forall-our 
capital growth. 

Prospects for Pro p er ty Shares look 
better at present than for some time, because 
of the fell in interest races, increased takeover 
activity and escalating rental values in 
Central London. It is this background, . 

coupled with the atmwAawr fty pn mmMw 
that continue to exist for the smaller 

, that convinces us that now is a 
.tune Co invest in property shares. 
Windsor Trust Managers is an 
independent investment company which has 
produced excellent performance from its 
existing three unit trusts. On an offer to bid 
basis since launch in March, 1986 Windsor 
Income Trust has grown 485%, "Windsor. 
Growth Trust 44596, and Windsor 


Convertible A: Equity Trust 21.896. (Money 
Management to 1st April, 1987). 

As a special launch offer we are holding 
the price of units at 50p. *Ib capitalise on 
send off now fbr 
farther information. 

Don't delay, the offer 
closes on May 15th. ^ 

Windsor 

Wtaw^aSISiteig 

I „ FT 98 

Ivanw 

I Min. 


I 

I 

j- -EE' 

I — Postcode — - | 





WEEKEND FT V 



Financial Times Saturday May 9 1987 





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FINANCE &THE FAMILY 




R2S39 


Poor 




THE £L36bn flotation of Rolls- 

Royce, the - state-owned aero- 
engine maker, seems to have 
created almost as much acri- 
mony as enthusiasm among 

small investors. 

In the. days leading up to 
Thursday morning’s dose, the 
Financial Times was inundated 
■with complaints from people 
who felt they had. been un- 
fairly excluded from the offer 
by die shortage of application 
forms. 

The problems began when the 
Rolls-Royce share information 
office received an unexpectedly 
large wave of interest in the 
flotation after the price was an- 
nounced on the Tuesday before 
.the bank holiday weekend. 

. People who had registered 
.with the share information 
office should have received 
their prospectuses by Friday of 
last week, the office had still 
not despatched them ad by 
Saturday. 

. Because the following Mon- 
day was a bank holiday, many 
thousands of people had stUl 
not received their prospectuses 
before they left for work on 
Tuesday — the last recommended 
day for posting completed ap- 
plications to the receiving 
banks. 

These people were then 
thrown into the same position 
as the legions of other would- 
be applicants who were scour- 
ing the country for application 
forms this week. Every branch 
of the National Westminster 
Bank mas supposed to be stock- 
ing the forms, but most soon 
ran out Consequently, many 
people were unable to obtain 
an application form before the 
last posting date. 

People In the City, of course, 
had few such problems: they 
could be sure of picking up 



an application form from 
Samuel Montagu, the merchant 
bank- sponsoring the flotation, 
or from National Westminster 
Bank’s headquarters and they 
could then deliver it by hand 
to one of the City receiving 
banks any time up till 10 o'clock 
on Thursday morning. 


Samuel Montagu, defending 
itself against criticisms that it 
had treated provincial investors 
unfairly, said it had published 
10 m application forms in news- 
papers last Sunday and the pre- 
vious Thursday. 

The trouble Is that not 
everyone reads the right news- 
papers; those that do may have 
wanted more than one form so 
that -. several members of the 
family could apply; and people 
who expected to be able to pick 
up application forms from the 
banks would not have kept their 
newspapers till the following 
week. 

Meanwhile, those who were 
excluded from the offer can 
console themselves widi the 
thought that they have prob- 
ably not missed much, ft has 
been so heavily oversubscribed 
that allocations are likely to 
be tiny, and few are forecast- 
ing an astronomic premium 
when dealings start on May 19. 

One possible scenario is that ] 
small investors will be rationed 
to 200 shares and the premium 
will be 30p a share. Take off 
£20 in dealing costs and a 
chunk more for lost interest, 
and the £35 or so remaining 
is hardly worth the tune or 
worry. 


Janet Bash previews a sale with a difference next week 


Careful judgment needed in 
Bank’s auction of gilts 


THE UK Government bond 
market is gearing up for the 
first of the Bank of England’s 
experimental auctions of gilts 
on Wednesday next week— the 
first innovation since the aboli- 
tion of fixed commissions on 
October 27 last year. 

Since . the Bank announced 
what it will be s ell ing — £lbn of 
eight per cent Treasury loan 
stock due to mature in 1992 — 
the market has been dominated 
by highly technical discussion of 
the merits and demerits of the 
stock. 

What does the recent shift 
in tire yield curve say about the 
pricing of the stock? Why does 
there seem to be a local dip in 
this section of the curve? How 
does this relatively low coupon 
stock compare with higher 
coupon issues in the same 
maturity area? 

The reason is that, in an 
auction system, the 27 primary 
dealers in gUt-edged stock and 
large institutions bidding direct 
to the Bank of England will 
be alolcated stock at the price 
they bid — the so-called ” bid 
price” system. 

Under the existing tap and 
tender system, those bidding 


axe awrded on “ common 
price ” basis. Within this 
system, the Bank brings 
together all the bids and works 
out one price at which bids are 
allotted. 

In an auction, you get what 
you ask for. Market makers 
and several large institutions 
with experienced enos~~ teams 
face the exacting task of judg- 
ing their pricing cannily and 
precisely “if they do not; they 
could stand to lose a great deal 
of money. 

The use of the bid price will 
be a stiff test of the expertise 
in market making and pricing 
built up by firms and institu- 
tions since Big Bang and 
already developed in the US 
Treasury bond market which 
already has a fully-fledged 
auction system. 

But the new auction system 
is not exclusively the preserve 
of primary dealers and power- 
ful institutions, backed up by 
large research and analytical 
teams and substantial capital. 

The Bank of England has 
made a provision for private 
investors to make non-competi- 
tive bids at the auction if they 
wish. The small investor need 


only decide how much of the 
stock be or she would like 
although the amount must be 
between a minimum of £1,000 
nominal and a imrimum of 
£ 100 , 000 . 

wpaci aoumzo3 n * no papjv«ie aj 
Under the old tender 
system, the minimum amount 


was only 

£100 

and. 

in this 

Income 

Tax 

10 1982 8 1992 3 1991 

(gross redemption yields) 

00 

8.612 

8.493 

6551 

IS 

7.161 

7579 

6.066 

27 

5599 

6507 

5577 

30 

5.709 

6.064 

5580 

40 

4.740 

5555 

5556 

50 

3.772 

4.446 

4533 

60 

2503 

3.637 

4509 

(Souret: 

Greenwell 

Montague 

GFtt-Edged) (Based on market 1 avals 
at noon, Thursday, May 7) 


respect, the auction system is 
less conducive to participation 
by private investors. 

Non-competitive' bids will be 
allotted in full at a price equal 
to the weighted average of the 
prices at which competitive 
bids have been accepted, 
rounded down to the nearest 
multiple of 5p. 


Although private investors do 
not need to fix on a price when 
applying for stock, the bid price 
system means that the price at 
which private investors will be 
allotted stock depends very 
much on the professionalism 
and expertise of the primary 
dealers. 

As one expert in gilts put it: 
“ Private investors are in effect 
signing a blank cheque. The 
size of that cheque will to a 
large extent depend on the 
expertise of market makers in 
pitching the price at the right 
level." 

John Shepperd, chief gilts 
economist at Warburg Securi- 
ties, says: "It is difficult to 
see private investors getting 
very excited about this issue. 
It is the wrong stock, the new 
system is complicated and 
hasn't been advertised very 
well. Private investors would 
be better served going for a 
stock with a lower coupon and 
apply through their stock- 
brokers in the normal way. 
They will probably get a better 
deal.” 

The experience of the pre- 
sent tender system suggests 
that few smaller investors put 
in bids at tender but are keen 


qj Percent 


Par Yield Curve 



Sauc» vnrtxirg Securitas 


customers for gilt-edged stock 
in the secondary market. It 
seems likely that the same 
pattern will emerge with the 
sale of stock by auction. 

A table of yields on the 
auction stock 8nd comparable 
ones In the same maturity area 
compiled by Bill Allen, a dir- 
ector of Greenwell Montagu 
Gilt-Edged, shows that next 
week's stock is a reasonable 
buy for those paying the basic 
rate of 27 per cent up to 39 per 
cent tax bracket. 

Anyt i*i y paying a higher 
rate appears to do better with 
the low coupon 3 per cent 
Treasury 1991 stock. 

Jnette Rutterford, gilts ana- 
lyst as Alexanders Laing & 
Cruikshank, recommends the 


stock partly because there are 
lc 


few other low coupon gilts at- 
tractive to income tax payers 
in the five to seven year area. 
The stock is already being 


actively traded in a “when 
issued " market in which the 
gilt can be bought and sold in 
a grey market before the actual 
auction on Wednesday. 

The stock is partly paid with 
the first payment due on May 
14 and a second instalment of 
£50 due on June 29. 

Private clients can either pur- 
chase the stock now in the when 
issued market and pay the first 
instalment on May 14 or buy 
after May 14 on a partly paid 
basis with the first instalment 
payable the day following pur- 
chase. 

Alternatively, if the attrac- 
tion of taking part directly in 
this experiment proves irresist- 
able, private investors can make 
a non-competitive bid and put 
a deposit of £50 each £100 
nominal applied for upfront. 

However, make sure to put 
in only one bid and get the 
application form in on time. 


Richard To mkins 


Charges rise 


PITY THE small share inves- 
tor. First, stockbrokers raise 
their charges on no-frills deal- 
ing services. Now, inexorably, 
the banks' are following suit. 

Next Monday* — just as inves- 
tors start to - contemplate 
potential Rolls-Royce gains— 
TtcMtanii ~Banfc. and" Lloyds Bank 
are hiking thelr roinimum com- 
mission charge v a move which 
tracks similar adjustments bv. 
ninth Barclays and NatWest last 
month. 

Midland Is simply raising the 
minimum from £15 to £20, put- 
ting it on a par with Barclays 
and NatWest Lloyds is more 
complicated; the minimum goes 
up from £10 to £15 but the bank 
- is retaining the - additional 
charge of £1 for deals of £100 
to £200; £2 for those between 
£200 and £300 S3 for £300 to 
£400; £4 for £400 to £500; and 
£5 on deals over £500. 

The four, banks have kept 
their - commission scales 
unchanged, but the higher 
minimum levels mean . that 
anyone who deals in. a bundle 
of shares valued at under 
£1.300 wm be hit 

Once over their mlnimums, 
Barclays and Midland charge 
15 per cent on equity bargains 
up to £7,000. Lloyds does like- 
wise but sets a max i m u m fee 
of £100, which means it 
becomes increasingly competi- 
tive for anyone whose deals top 
£0.700. NatWest moves on to the 
lower scale of 1 per cent on 
between £5,000 and £12,500. 


In the aftermath of Big Bang. 

Most recently, Spencer Thorn- 
ton — the small London broker, 
whose rates were winningly 
low — raised its minimum charge 
from £12.50 to £20, and its com- 
mission rates from 1 per cent 
to 1.25 4 >er cent. It has kept the 
£100 minimum ebarge, however. 

The more-widely publicised 
Hoaxe Govett “Dealercall” ser- 
vice has also adjusted, though 
more modestly. Its minimum 
has risen from £1250 but only 
to £15; there is a unchanged 
commission rate of 155 per cent 
on bargains up to £7,000. 

Like the brokers, banks say 
they are responding partially to 
the upsurge in business particu- 
larly at the smaller and less 
profitable end. “The size of 
transactions has definitely come 
down,” says Barclays. And, since 
bank branches usually put their 
bargains through a panel of 
brokers, there is some element 
of passed-on cost in the higher 
charges. - 

So where does this leave small 
investors? Despite its recent 
increase. Hoare Govett's Dealer- 
call still looks attractive, with 
Henry Cooke Lumsden’s 
Marketiink (£15 minimum and 
15 per cent to £7.000) is also 
competitive. For those dealing 
in parcels of £2,000-plus. Dis- 
count Brokers International 
( minimum £25 and 0.825 per 
cent up to £7,000) is a winner. 


The rise in minimum com- 
mission rates by the banks 
mirrors the changes at stock- 
brokers themselves— most 
noticeably on their “no-frills" 
dealing services. . Kleinwort 
Grieveson's "Sharecall" plus the 
“Gold Dealing” service offered 
by a smaller firm, Charles 
Stanley, were withdrawn alt*£ 
gether back in- March, and 
there is barely a dealing-only 
service which has not seen 
some upwards rates adjustment 


For Rolls-Royce punters, 
some timely consideration of the 
problem could be worthwhile. 
The signs are that brokers are 
becoming increasingly unwill- 
ing to take on small, non-client 
business and that physical 
presentation of allotment 

letters before dealings take 
place will be a commonplace 
request. Simply dropping Into a 
bank branch may get the busi- 
ness- done-^but -£20 could eat 
unpleasantly into any short- 
term profit. 

Nikki Tait 


Ethics pay 


ETHICAL INVESTMENT does 
not mean low investment 
returns. - ^ 

This is the message that has 
come through this week from 
two funds that select their in- 
vestments to meet certain social 
criteria. 

Ethical investment Is strong 
in the US, but it still has to be 
accepted by. the investing public 
in the UK. 

The Ethical Investment Fund, 
launched 15 months ago— a 
unit-linked fund underwritten 
by Royal Heritage has shown a 
return of 37.4 per cent after 
allowing for unrealised capital 
gains— 41 per cent before this 
allowance. Over the same 
period the FT-Actnaries rose by 
52.8 per cent 

However, David - Brbmidge, 
investment manager for the, 
pointed out that this, was a. 
mixed fund with some invest- 
ment. In gilts. The fund’s equity 
content averages 85-90 per cent, 
but performance was diluted by 
the gilt content 

However, the fund’s size is 
£L4Bi. emphasising that 


only 


the concept is not widely 
accepted. • 

A better picture is painted by 
the doyen of ethical funds— the 
Ethical Stewardship ] Fund by 
Friends’ Provident This unit 
trust has now reached £50m 
since its launch three years 
ago. This is not large by 
current unit trust standards, 
but net new money is now. 
coming in at a rate in excess 
. of £lm a month. 

Its investment performance 
is extremely good. . In the 12 
months to April 20, 1987, it was 
rated 8th out of 90 UK general 
-trusts with a growth of 24.6 
per cent 

Investors who are concerned 
with -the -social implications of 
their investments and the 
source of their Investment re- 
turns 'have to accept that such 
an investment philosophy will 
mean pasting up on certain in- 
vestment' Situations. 

These funds will not be in- 
vesting in Rolls-Royce, because 
that company supplies military 
as weU as civil customers. 

Eric Short 


Choose the right ground and you’ll 
reap the benefits. 


To ensure a successful crop you. have to 
choose rich, fertile ground. 



Such is the case when you’re 
looking for the best place to 
invest your savings: 


Put your money in 
Halifax 90 DayXtraandyou can 
be confident it’ll achieve good, 
steady growth. 


To start you need only put in as little 
as £500, which will earn 7.75%. net imme- 
diately. But keep your full half-yearly 
interest invested and your interest grows 
to 7.90% compounded. annual rate (CAR.). 


For those with £10,000 or more we’ve 
introduced a new level of interest, 8% net, 
which compounded annually gives you 8.16%. 

If you!ve £25,000 or more you’ll bring in 
8.25%, springing up to 8.42% over a full year 


We can pay your interest monthly in the way "gg 
that suits you best; into your Halifax Cardcash, Instant 
Xtra or Paid-Up Share account, or your bank account 

To make withdrawals, just give us 90 days? notice 
in writing. Or you can have instant access, losing only 
90 days? interest on the amount that is taken out 


Withdrawals which leave a balance of at least £5,000 
can be made immediately without losing interest, giving 
you greater flexibility. 


So if you’re looking for a good yield on your invest- 
ment choose Halifax 90 Day Xtra. Fill in the coupon, or 
drop into your local branch. 


£25,000+ 

825% net 

8.42% (car.) 

£10,000+ 

8.00% net 

8i6% (CAR.) 

£500+ 

7.75% net 

7.90% (CAR.) 



ALL INTEREST RAZES QUOTED ARE NET OFLIARTLirr TO BASIC RAIE INCOME TAX AND ARE VARIABLE. HALIFAX BUILDING SOOEri; TRINITY ROAD, HALIFAX HX1 2RG. 











VI WEEKEND FT 


EXPERT ADVICE ON mrrl 
THE STOCKMARKET rKttl 


MagmTismg prnfifs frnm the rfnr Irmaricet regimes expert 
advice. That's what you get from IC Stockmarket Letter. 
IC Stockmarket Letter is a weekly tip sheet published by 
Financial Times Business Information. We could tell you how 
good we are and illustrate the point by highlighting the success 
of a few top performers - and pretend they were typical Or we 
could discuss the performance of an outstanding stockmarket 
winner - and imply that we tipped it {though we didn’t). We 
could go to quite amazing lengths to deceive you and con you 
into subscribing. 

But we on the IC Stockmarket Letter prefer the honest 
approach. 

OUR REPUTATION 

We don’t claim to be perfect We all make mistakes and for that 
reason we believe that the only accurate way of judging a tip 
sheet is by looking at how all of its recommendations perform 
over a fairly long and recent period. Recent form must rate 
highly. Any period has to be arbitrary, but the tahle below 


j How our selections have performed. 


\ List of ALL ICSL recommendations 

Your share 1 

1 from July 1986 to December 1986 

%omat 

11387 

value far 

Company name 

fee. 

Dale 

£1,000 

invested 

Abbey Life 

2-7-86 

28 

1,280 

ELS 

16-7-86 

28 

1280 

Australian Con Mins 

23-7-86 

85T 

Australian Con Mins 

23-7-86 

185T 

2.330} 

Australian Con Mins 

23-7-86 

176 

Borland 

23-7-86 

-19 

810 

Enterprise Gold 

23-7-86 

not 

3,650} 

EntercraeGold 

23-7-86 

420* 

Metana 

23-7-86 

122t 


Metana 

23-7-86 

220| 

2,805} 

Metana 

23-7-86 

258 

North Kalgurli 

23-7-86 

30 

1,300 

Blick 

30-7-86 

33 

1,330 

Bemrose 

6-8-86 

48 

1,480 

John Maunders 

27-8-86 

60 

1,600 

William Bedford 

3-9-86 

42 

1,420 

Henderson 

10-9-86 

13 

1,130 

Process Systems 

17-9-86 

65 

1,650 

Hall Engineering 

1-1086 

46 

1,460 

Lambert Howarth 

29-1086 

63 

1,630 

AMEC 

5-1186 

27 

1270 

William Sinr-lair 

5-1186 

47 

1,470 

Alfred McAJbme 

12-1186 

24 

1240 

Automated Security 

19-1186 

25 

1250 

Brooke Tool 

26-1186 

6 

1,060 

Reed International 

3-1286 

44 

1,440 

Kwik Save 

17-12-86 

11 

1,110 

Average i 


55$ 



1 tOreraapcriornsaBoe asBamesmehafiof holding breamed after each partial 1 

| {list exdades Dew issue and np-date comments). 





records all new recommendations made in the period from July 
to December 1986 Gosses included). Judge us for youreelL 
We feel die best way to judge overall performances by 
comparing each recommendatiori with the performance of the 
stockmarket as a whole ova- the same period. Using the FT 
Actuaries All-Share index as toe measuring rod, the overall 
market gain is only 22%. Our average gain on selections is 55%. 
These are the facts. Free from distortion. 

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a* 

The Royal Bank 
of Scotland pic 

Base Rate 

The Royal Bank of Scotland 
announces that with effect 
from dose of business 
on 11 May 1987 
its Base Rate for advances 
will be reduced from 9%% 
to 9% per annum. 

tte &cr«l Baak of ScMlnd pie. bgtefcnd Office 30 ft An*™ Square, EBB JIB. 

- - - I In Scotland N*. C01U. 


National 

jr^A Westminster 
mw Bank PLC 

NatWest announces that 
with effect from 
Monday, 11th May, 1987, 
its Base Rate 
is decreased from 
9.50% to 9.00% per annum. 

All facilities (including regulated consumer credit 
agreements) with a rate of interest linked to 
NatWest Base Rate will be varied accordingly. 

41 Lolhbury London EC2P 2BP 


00 © 


BANK 


With effect from the close 
of business on Friday 
8th May 1987 

and until further notice, TSB 
Base Rate is decreased from 
9.5% p.a. to 9.0% p.a. 

All facilities (including regulated consumer 
credit agreements) with a rate of interest linked 
to TSB Base Rate will be varied accor dingly 

TSB Group pic, 

25 Milk Street, London EC2V 8UI 



Clydesdale Bank PLC 


BASE RATE 


CLYDESDALE BANK PLC 

ANNOUNCES THAT WITH EFFECT 
FROM MAY 11, 1987, ITS BASE RATE 
FOR LENDING IS BEING REDUCED 
FROM 9J% to 9 % PER ANNUM. 


Financial Times Saturday May 9 1987 


• FINANCE &THEFAMHjL‘ 


Christine Stopp takes a close look at U S unit trusts 

Strong hedging can help 



UNIT TRUST Association 
fiigures to the start of 1987 
show that the US has been the 
least rewarding of the more 
important world markets for 
unit trust investors over most 
periods. For example, £1,000 
invested 15 years ago grew to 
only £2,834 compared with 
£11,752 in same period for the 
winning Japan median fund. 

Unit trusts investing in the 
US have always been dogged 
by currency movements. Just 
recently (after a period since 
last November, when the dollar 
has fallen sharply against the 
pound) performance looks un- 
inspiring In most cases. Even 
those trusts whose investment 
policies have been successful 
are finding their efforts, frus- 
trating] y, being “ killed by the 
dollar” 

The trusts at the top of the 
rankings are mostly those which 
have been strongly “hedged” 
against currency fluctuations. 
Among them. Gartmore Hedged 
American has been in the top 
three since its launch just over 
two years ago. 

This fund is unique In its 
sector — its policy re to be 
hedged at least 85 per cent all 
the time. In practice, it is 
usually S3 per cent hedged. 

The idea of the fund was first 
mooted at Gartmore when the 
pound and the dollar were 
almost at parity. By the rime 
It was launched, the pound had 
recovered to about 1.26. Even 
so. the launch timing paid off. 
No other group has been bold 
enough to follow in Gartmore's 
footsteps. 

On the whole there is a reluc- 
tance, in the unit trust industry, 
to hedge. This reluctance is 
caused partly by problems in 
the mechanics of hedging. Unit 
trusts can only hedge by using 
back-to-back loans — these are 
are administratively complex to 
set up and unwind. 

Unlike investment trusts, they 
cannot switch overnight from 
50 per cent hedging to none at 
all by the use of futures con- 
tracts, and they can only hedge 
back Into sterling. 

Fidelity, whose trust is 25 per 
cent hogged, illustrates bow 
much effort you have to put 
Into quite a gwiaii percentage 
gain through currency hedging. 
They pot on a 25 per cent hedge 
just before the Budget, which 


they thought would be favour- 
ably received, causing the 
pound to strengthen. It went on 
at 1.56, and subsequently to 
1 . 86 . 

By hedging, therefore, the 
trust has made 25 per cent of 
the difference between 1.36 and 
1.66, or somewhat under 2 per 
cent — a helpful percentage, 
nevertheless, over less than two 
months. 

Gary Lowe of Fidelity ex- 
presses a view common in the 
industry: " It's a no-win situa- 
tion for managers. Some in- 
vestors expect currency 
management Others expect full 
exposure.” 

Even though they may feel 
they should be offering a pure, 
fully exposed fund to the in- 
vestor, few managers would 
sniff at gaining a few percent- 
age points through hedging. 

The Prudential has a house 
philosophy of managing cur- 
rency exposure, and their 
Holbom North American trust 
number one in the sector over 
a year, is at present 50 per cent 
hedged. Ted Francis, the 
manager, is certainly not scared 
of hedging, and the fund has 
varied between 25 per cent and 
60 per cent hedged over the 
past year or more. 

At M & G, the policy is rather 
different. US manager Paul Nix 
will only hedge ii he sees ** a 
discernible trend. Going from 
1.50 to 1.60 is marginal; 140 to 


160 would be worthwhile. We 
tend to make occasional big 
moves — not to dabble con- 
stantly.” 

Nix is the first to admit that 
some hedging over the last few 
months would have been worth- 
while. His giant American and 


US UNIT TRUSTS 
Performance to 1.4.87. % growth 
offer-to-hid. Income reinvested 
(1 yr sector ranking in brackets) 
6 mths 1 yr 2 yrs 

Holborn 

Nth. Amer. 20.8 23-2(1) — 
Gartmore 

Hdg.Amer. 25J3 21.4(3) 592 
Fidelity 

American 16.8 13.7(9) 39.3 
MAG Amer. 

& Gen. 42 *-0.7(77) 2U 
Sector avge. 9.8 5J 21.0 
ln.sctr.avge. 113 20 493 

Dow Jones* 30.4 26.7 SO 

* Without reinvested income, 
not converted to sterling . 
Source: OPAL 

General Trust is at present well 
down the sector rankings. He is 
bullish of the US market at 
present 

He argues that “ if the pound 
is still between 1.60 and 1.70 to 
the dollar after the General 
Election, all the good news on 
UK Ltd win be in the shop 
window.’* It will be hard to see 
the pound’s strength con- 


tinuing. . „ 

At the other end of the 
equation, he la much more 
optimistic now on profits 
growth in the US, and foci* the 
dollar is “very low.** 

Gartmore's Pater Scott teea 
long-term weakness for the 
dollar, though he agrees that 
the pound's independent 
strength is unlikely to last. 

He “secs no substantial 
reason for exposure to the 
dollar." On the other hand, 
neither la he particularly 
bullish about the US, and he 
advises Investors not to be 
overweight there. 

At Fidelity. Gary Lowe feels 
the dollar will probably stay 
weak, though he expects some 
stability at present level*. “ A 
further fall is in no one’s 
Interest." 

Ted Frauds of the Pm 
concurs with dollar weakness In 
the near terms, and has been 
advising relatively small ex- 
posure to the U&. However, lie 
underlines the unexpected way 
in which the currency has been 
behaving. He Is surprised that 
the current dollar crisis has 
taken so long to happen. 

“It seems to he happening 
just as the trading balance is 
turning: A turnaround in the 
dollar may not be too far away 
either." While staying hedged 
at present, he Is watching out 
for that happy situation where 
markets and currency take off 
in concert. 



sale 


ONE OF the significant benefits 
you will enjoy on ceasing to 
be a tax resident of the UK 
is total exclusion from Capital 
Gains Tax, even on gains aris- 
ing from British assets- 

But that is not to say you 
can ignore Capital Gains Tax 
altogether — at any rate if 
you intend to return to the UK 
Tour exemption does not ex- 
tend to gains which accrue 
while yon are non-resident — 
only to those which are 
realised while you are non- 
resident 

Consequently, returning to 
Britain when you own assets 
which have built up gains is 
to be avoided if possible. 

A sale while you are still non- 
resident will circumvent the 
problem — except perhaps for 
jointly owned assets (because 
non-working spouses often re- 
main UK resident). So will 
“bed and breakfasting” where 
that is a possibility. Unfor- 
tunately, with property that is 
not the case. As a result, toe 
exemption f or pr incipal private 
residences (PPR) may be of 
considerable importance. Fur- 
thermore, the actions you take 
while non-resident could have 
an important bearing on the 
tax you will have to pay in later 
years. 

The PPR exemption applies 
to any dwelling house (a term 
which encompasses any living 
accommodation) used as your 
only or main residence, to- 
gether with garden or grounds 
of up to one acre — and some- 
times more. The relief may 
not be total and can be limited 
in terms of space (when only 
part of the property is used 
as your residence) or time 
(when it is not so used through- 
out your period of ownership). 
But if a property ever qualifies 
as your PPR, the last two years 
of your ownership will always 
be an exempt period. 

To be treated as your resi- 
dence at any time, the legisla- 
tion requires that you occupy 
the property as such. Obvi- 
ously, most expatriates are 
unable to live in their British 
home except for relatively short 
periods when on leave, but 
fortunately the legislation 
incorporates provisions preserv- 
ing the exemption in such 
cases. Provided that two con- 
ditions are met, absences from 
the property occasioned by 
full-time employment overseas 
are treated as exempt periods. 

The first requirement is that 
both before and after the 
period of employment overseas, 
you lived in the property as 
your PPR. By concession, the 
benefit of the relief will not be 
lost If you cannot resume resi- 
dence in your property because 
the terms of your employment 
require you to work elsewhere. 
(But "camping” in an empty 
house will not do.) There is 
also a problem if you change 
houses while overseas. As a 
result of the “ before and 
after " rules, exemption will not 
start to run on the new pro- 




perty until you have lived init 
However, the fact that your 
property may be let during 
your absence in no way affects 
the position. 

It is also necessary to show 
that, during your absence over- 
seas. there was no other resi- 
dence or main residence 
“eligible for relief." 

Some expatriates buy homes 
in the countries where they 
work, and it is important for 
them to realise that the Reve- 
nue regards any such property 
as "eligible for relief.” They 
are not impressed by the fact 
that you acquired the overseas 
home after becoming non- 


resident and that since you 
propose to sell it before return- 
ing to Britain, any gain win not 
be subject to Capital Gains Tax 
anyway. 

Now, subject to what follows 
about properties used by depen- 
dent relatives, a husband and 
wife may, for any particular 
period, qualify for PPR exemp- 
tion in relation to one property 
only- If you own more than 
one, you can determine which 
of them is to be so treated for 
PPR, by making an election 
within two years of foe time 
when more than one property 
was owned. If you own a large 


mansion in Dulwich and a small 
fiat .in North Wales, It would 
obviously pay you to nominate 
the former. And either one 
would be better than a foreign 
residence which you will sell 
before returning to Britain. 
However, you cannot elect as 
your PPR a property in which 
you never live. 

If you fail to take advantage 
of the election, the Inspector 
of Taxes can determine the 
matter— which may not, of 
course, produce the best result 
for you. 

Donald Elkin 


On an offer to offer 

basis since launch ■ ■ 

22/5/85 to 23/4/87 gg 

THE S&W SMALLER 
SECURITIES TRUST 


The S&W Smaller Securities Trust 
has appreciated by 128^% since 
the first public offer on 22nd May, 
1985. The fund invests for long 
term capital growth and income 
in companies at a progressive 
stage of development where 
management changes could 
improve profits and in proven 
companies still small enough to 
show above average growth. 

The trustees are The Royal Bank 
of Scotland. 

Investors should remember that 
the value of units can go down as 
well as up. 

Smith & Williamson Unit Trust 

Managersaremembersof the UTA. 



— s.w.s.s.T. . — ft so — . rrsEtoo. 

^ To: Smith & WliliamioD UnltTimt Mw iflt n 
| Nol Rkfing Housa Straat, London W 1 A 3AS 

I 
I 


Tebphom: 01-637 5377 
Pto»aoamndmodmtathiofShm 
S&W Smmtter SecurfUtts Thut 
Mama 


1 Addrasx. 

I 


■L, M. i.W | 










Financial Times Saturday May 9 1987 


WEEKEND FT YU 


FINANCE &THE FAMILY 


Trends are changing in the salerooms, as Antony Thorncroft discovers 


Treasures tempi investors 


THESE ABE heady days In the 
salerooms. Not - a week goes 
by without a new auction 
record being established. They 
might not attract the same 
attention as the £24.75m paid 
for Van Gogh's “Sunflowers ” 
in March — a record price for 
any work of art at auction — 
but in the last two weeks there 
has been -an .auction record for 
a Stradzvazius violin of 
£440,000, at Christie’s; for a 
book auction, when the botani- 
cal library of Robert de Beider ' 
made almost £6m, at Sothebys*; 
£3&5Q0 for a Chinese snuff 
bottle; and more. Throw in 
the Duchess of Windsor's jewels, 
and their £3Qm, and you get a 
market which is starting to in- 
terest investors more usually 
found dabbling in shares or 
property. 

The latest Sotheby's art index, 
which monitors prices at 
auction in 10 major art markets, 
stood at 515 at the end of 
March, a significant improve- 
ment over the 432 a year pre- 
viously— and the major sales 
are still, to come. The biggest 
rises were in Impressionist and 
Modern paintings, and English 
furniture. But the best indica- 
tion of the buoyancy of the 
market was the low proportion 
of works of art at auction which 
were left unsold— many more 
sales than usual have recorded 
u bought in ” rates of 5 per cent 
or less. 

The most obvious case of in- 
stitutional buying was the Van 
Gogh: it went to Yasuda. a Japa- 
nese insurance company. The 
Japanese, with- their strong 
currency, have been the main 
new force in the market at the 
big auctions in .recent months. 
They have more than compen- 
sated for American caution, 
prompted by the falling buying 
power of the dollar. Tradi- 
tionally the new rich find other 
outlets rather than works of 
art for their sudden wealth but 
in time they often come to 
.appreciate fine . objects.. Un- 
doubtedly, the' boom in the art 
market is fuelled by the profits 
being made through investment 
or business activity. 

• Yet while new buyers are 
tempted in/ some of the institu- 
tional investors of the past are 



Andy Warhol’s “ large Flowers,” which fetched $286,000— compared with the 
pre-sale estimate of $100,000^150,000— at the Lambert collection auction 

in New York this week 


Belling off their treasures. The 
most notable example is the 
British Rail Pension Fund, 
which Is disposing of a hundred 
Old Master prints in June. The 
fund switched around 2 per cent 
of its investment portfolio Into 
works of art In the mid-1970s, 
when raging inflation made any 
alternative seem attractive. 
Now, re-assured by the returns 
from traditional markets, it is 
testing the waters by disposing 
of its prints. 

It expects to get at least 
£L5m, and has chosen a good 
time to cash in its investment 
If the estimates are right it will 
not have made a killing— a Rem- 
brandt of St Jerome in the 
desert which it bought for 
£36,400 in 1976, now carries a 
top estimate of £120,000. This 
is a modest return, given the 
fact that there have been no 
dividends — but if the art market 
continues to boom the actual 
sales price could be highre, and 
BR!s brave experiment will 
seem to have been well judged. 

The new regime running tire 
pension fund is dubious about 
the art holding and, if it can do 
well from .the prints, some of 


tire other 2,000 items held, in- 
cluding Old Master and Im- 
pressionist pictures, and 
Chinese ceramics, could soon 
appear back at Sotheby's, which 
originally advised on the in- 
vestment. 

In the US, corporate invest- 
ment in tiie aits is much further 
advanced and the year has also 
seen some major sales, notably 
that by tbe Cottgoleuzn Corpora- 
tion, the biggest supplier of 
warships to the US navy. This 
brought In . f 1.3m in January 
with the disposal of a collection 
of furniture and pictures. The 
company acquired to 
improve the environment in its 
offices, but when it succumbed 
to a takeover bid the collection 
returned to the market— and 
made a profit 

This week, two corporate 
collections under the 

hammer at Christie’s in New 
York. Both were of modem 
and contemporary art but came 
from very different back- 
grounds. Howard Gilman of 
the Ciiman Paper Company is 
a typical American collector, 
wanting tire avante garde to 
decorate his New York offices. 


Scots eye the East 


fr: 

THE LIFE Association of Scot- 
land, a . member of the Dutch - 
insurance giant Naticmale 
Nededgnden, has . completed the 
first - phase in Its development 
of its unit bnur-pperations with 
the launch of two more funds— 
from the East and from the 
West 

The LAS Far East Trust aims 
to invest m Japan (up to 40 per 
cent) and will also be used for 
entry into the emerging Pacific, 
economies now - being dis- 
covered by unit trust managers. 

Since the group already has 
a Japanese fund, this new trust 
is for those investors who want 
to cover the whole of the Far 
East within one fund. 

The other fund is a straight- 
forward Extra- Income Trust 
investing in UK equities to . 
provide a ‘ yield .substantially 
higher than the yield on the 
All-Share Index. 

These funds may be con- 
sidered old fashioned alongside 

the emerging Asian markets, 
but they have- had a highly 
consistent growth record for 
both capital and income over 
many years. 

• LAS Is also -expanding its 
unit-linked life operations with 
the launch of a unit-linked 
endowment mortgage plan— 
Homeplan Plus. 

This follows the usual format 
for such plans, which are now 
being accepted by a growing 
number of building societies 
to repay mortgages. " 

- London Life Association has 
launched its version of the cur- 
rent inheritance tax . schemes 
under the rather unimaginative 



name of Inheritance Preserva- 
tion Plan. 

This plan operates on the 
format of the investors making 
a loan to the trustees, who in- 
vest in unit-linked investment 
bonds with London Life. 

•’ The loan is repayable on 
demand, thus avoiding liability 
to inheritance tax. The investor 
can- get a regular income from 
the loan under the withdrawal 
-facilities. 

Such a plan may well appeal 
to ah Investor's professional 
adviser, 'since London Life is 
one of the very companies 
which does not pay commission 
to intermediaries. There are no 


complications over rebates of 
commission and the fees 
charged by the adviser. 

The Criterion - Assurance 
Grot& has launched a new 
personal pension plan aimed 
primarily at the aelfempfeyed 
— one of the first contracts to 
be launched since the Chan- 
cellor, Nigel Lawson, an- 
nounced his pensions reforms 
in this year's Budget 

However, the literature des- 
cribing the benefits omits to 
mention one of the Budget 
reforms— the fret that all new 
contracts will have a limit of 
£150,000 on the ultimate tax 
free cash sum. 

The company claims that 
such warnings are being given 
to individuals on illustrations 
of benefits. Nevertheless, when 
the new financial services rules 
come info effect it is unlikely 
that a life company would be 
able to present such literature 
containing wrong information. 

The literature was apparently 
primed just before tbe Budget, 
but that should not he an 
excuse for giving wrong infor- 
mation, -evm if it is not likely 
to affect the vast majority of 
investors. 

The other major change cut- 
ting back on the amount of 
cash will apply from next 
January. - So investors taking 
out personal pension contracts 
should effect regular premium 
contracts rather 1 than single 
premiums to get the full benefit 
of the current favourable rules. 

Eric Short 


TWO DEALS from rubber 
bridge caught my fancy. We 
look first at Saving Time: . 

:.S 

• K7 4 
5 4 : 

0 J10 9 7 5 

* 9 8 4 . . 

W JE 

• 6 52 * A 9 8 

O Q J109 <5 8 7 3 2 

O A 6 2 0.83 

• K 7 6 * 105 3 2 

.... s 

♦ Q J 103. 

<5 A K 6 

0 K Q 4 
f AQJ 

East dealt at a love score and 
passed. South opened with two 


East’s defence was infantile^ 
After taking- his ace of spades, 
he . should see that a heart 
return would endplay his 
partner. 

Unless West has at least the 

king of clubs, the situation Is 

hopeless. -Hie should . have 
beaten the contract by leading 
back a dub, 

. Now let us examine the 
dedarar*s ploy— I think we 
can' do better. We note East’s 
seven of hearts— it- looks like 
the highest but one of four— 
so instead of ducking we take 
with the king, play king and 
queen of diamonds, then lead a 
spade to the king, which East 
takes. If East leads a club, we 
can afford the finesse— the 
tempo gained by not playing a 
third round of- diamonds has 
rendered : the club return 


At game all, sitting South, I 
dealt and bid two hearts. West 
overcalled with two spades. 
North passed. East raised to 
three spades, and 1 said four 
diamonds. West said five clubs 
—a foolish and unnecessary 
disclosure after spade support 
from ' his partner— North said 
five hearts. East went five 
Spades, and my six of hearts 
was doubled by West. 

X ruffed the lead of the king 
-of dubs, end drew trumps with 
ace and queen. At this point 
West is merited with at most 
one diamond, and may even be 
.void. If East has all four 
diamonds, I cannot afford to 
play the ace of diamonds as a 
safety measure, so I decided to 
lead the knave for a first round 
finesse. If I lose to the single- 
ton queen. I shall look too 


passed, soum openea ineffectual; if he leads a heart, —that has happened before- 

no trumps, and North rauea to oar spade winners, but the satisfaction of making 

three. West, led toe qneen or throw West in with another the against a 44) diamond 


hearts, on which East dropped 
the seven, and this was allowed 
to hold.; Taking the, knave of 
hearts with- his .ace. (East com- . 
pleted the peter), the declarer 
played king, queen, and another 
diamond. West won and led the 
ten of hearts to force out tfae 
king. South played queen and 
knave of spades. East naturally 
withholding his ace, and a third 
spade ran. to king and ace. East 
returned the . eight of hearts, 
which allowed West to make bis 
nine, but after that he was . 
forced to lead a club 1 Into the - 
declarer’s tenace, Rial the con- 
tract was made. 


heart 

We turn to Insurance Policy; 
N 

♦ 3 

O Q 9 7 5 

' 0 J 10 8 5 4 

* 10 6 4 

W E 

♦ K J 8 5 4 ♦ A 7 6 2 

<9J3 : 0 4 

0 8. O Q 9 6 

♦ AK Q 87 * J 9 5 3 2; 

..S' 

•Q 10 9 

-O A K 10 8 6 2 
O A K 7 2 

• — 


break would be great The 
knave held, and I claimed my 
contract 

West's bidding was bad. If 
he had followed my practice in 
such .competitive situations by 
bidding one more as a cheap 
insurance, he would have bid 
six spades, which goes two 
down against the best defence. 
North should lead the queen of 
hearts, on which I drop the 
• two, and the club switch, which 
my signals demands, lets me 
make a ruff. 

E. P. C Cotter 


and buying such names 
Frank Stella and Ellsworth 
Kelly. Now the company has 
moved to the south and the 
collection of minimal and con- 
ceptual art has been sold. In 
the same auction a businesman 
with a much longer pedigree, 
Baron Lambert of the Banque 
Lambert of Brussels, which 
dates from the early 19th cen- 
tury, disposed of his modern 
art, including works by Bacon 
and Marie Rothko. This used 
to be one of the finest public 
collections in Belgium but now* 
the bank is closed to casual 
visitors and the paintings sold. 
They have proved an excellent! 
investment — 17 paintings, 
brought the bank (£3.7m). 

The fact that some corporate 
investors are taking advantage 
of the current high prices by 
selling should give prospective 
new buyers pause for thought. 
In theory, if the stock ex- 
changes boil over alternative 
investments, like works of art* 
should be all the rage. But 
fewer and fewer masterpieces 1 
come on to the market these 
days and there Is little perma- 
nent demand for the second 
rate. Also, art at the top price 
level Is a very narrow market 
although Christie's was amazed 
to see a dozen prospective 
bidders up to the $l(hn marie 
when it sold the Sunflowers. All 
in all, works of art should still 
be collected for love or only on 
the advice of acknowledged 
experts. 



Born fr om the world of international merchant 
bankers Guinness Mahon - a new star - 

GuinnessFlight 

Global Asset Management Limited 

That’s the new name for the high flying invest- 
ment team who look after the interests of 
thousands of international investors in funds 
managed by Guinness Mahon Fund Managers 
(Guernsey) Limited. 

Same successful team 

Same successful investment strategies 

For our existing investors and for new investors 
the message is, “business as usual” from one of 
the best teams in the international investment 
business.' 


GuinnessFlight 

GLOBAL ASSET MANAGEMENT 

32 St Mary at Hill, London EC3P 3 A J 
Telephone 01-623 9333 Ext 2602/2603 

Please send me more information about 
GuinnessFlight Global Asset Management. 

Name: 

Add 


I 

odi'eTtiwunl ha^tenplaeat by Cuutnn; Wa/s-i & Co. Limited, on ormpl staler. - J 


Telephone:. 


A NEW OPPORTUNITY FOR THE 



SERIOUS 

For the serious unit trust investor there are two essentials to success. The 
first is pick the xight managers. The second is to select the right trust at 
the right time. Many investors -will regard an investment with Royal 
London at the present time as satisfying both cri teria. There are 2 very- 
important reasons... 

T. WE ARE THE ‘SMALL UNIT TRUST 
MANAGEMENT GROUP OFTHE YEAR: 

"We achieved this accolad e in a recent survey by the 
influential financial pu b lication, ‘Money Manage- 
ment 1 for consistent performance across the range 
of Royal London unit trusts over one and three 

years. 

2. WE ARE LAUNCHING A 
EUROPEAN GROWTH 
TRUST NOW. 

This is because -European markets are 
currently amongst the cheapest in the 
■world. We believe that this is about 
to change as investors recognise 
the inherent value of European 
markets backed, as they are, by 
strong currencies, lowinflarion and 
positive economic growth. 

we Manage investments imaginatively. 

: management -for example, our 
-has already substantially benefited 
our e xisti ng overseas umt trusts and win be a crucial factor in achieving the capital 
growth which is the primary aim of the new trust. 

WE ARE ALREADY SUCCESSFUL IN EUROPE. 

The Royal London Group already manages many £ millions in various European 
markets, both for our unit trusts and for the life assurance funds of our parent 
company, The Royal London Mutual Insurance Society limited, whose assets 
exceed £2 billion. 

WE SHALL INVEST IN A WIDE SPREAD OF MARKETS. 

The initial spread of invest m e nt s for our new trust will include Ranee, Spain 

GENERAL INFORMATION. 

BUYING AND SELLING UNITS. Minimum Investment ,£500. A disootur of up to 214, borne by die 

S&d fcnmediarely and a Cemfirarr within eight weefct Once the initial o fi b rins closed times on be 
bought or sold on any business day; at die price then ruling, by writing to or telephoning year Adviser or the 
MasaseaL Rices and yield arc quoted daily in the national press. Payment for units sold is normally made within 
a few dayt of receipt of the renounced unit certificate, 

CHARGES AND REMUNERATION-Animtial charge of 5%% (equivalent to 5% of die ofierprice) is included 
in die offer price. An annual m a n ag emen t charge ofl% (pins VAT) of he value of the Trust will be deducted on a 
monthl y hack firm tty Trnttfr income. The Trng Deed e nnraim prrmaon tn InereMeehU charge m a mariinnm 
of (pins VAI) alter three m o n ths’ notice. The Manage*! may make rounding adjustments to bid anti afier 


CTOR 


and Italy. However; unlike unit trusts which are invested solely in individual 
European m arkets; we shall switch part of the portfolio when we consider the rime 
is right to do so. Other markets likely to be considered at thar rime are Germany, 
Switzerland, Belgium and Finland. 

WE AIM TO MAXIMISE CAPITAL GROWTH. 
Our aim is to maximise growth of capital by means 
of an actively managed equity portfolio invested 
in Europe. 

Traded Options, together with shares quoted 
on approved secondary markets, may also be 
held from time to rime. 

With the emphasis on capital appreciation, 
the estimated gross initial yield is likely 
to be less than 1%. Income will be dis- 
tributed, net of basic rate tax, on 10th 
April and 10th October, commencing 
on 10th October 1987. 




WE ARE OFFERING A 
GENEROUS DISCOUNT. 

Units are on a fixed price offer of SOp,' 
less a 2% discount for amounts of £5,000 
or more or a 1% discount for amounts below ' 

£5,000, until dose ofbusiness on 29th May 198" 

You can invest by post using the coupon below, or through your Professional Adviser 
or by telephone through our direct dealing sendee (Tel: (0206) 576115). 

In all cases you will receive the full discount to which you are entitled during the 
launch period. 

Remember that the price of units, and the income from them, may go down as 
well as up. 


prices of not more dun L25p per trait or 1% whichever is the less. Remuneration is payable to qualified inter- 
mediaries; races are available on requ est. 

TRUSTEE AND TRUST DEED. Tbe Trustee is Midland Bank Trust Company Limited. The Trust Deed 
contains provision for efie Managers to invest in Traded Options and approved secondary markers subject to the 
limitations [aid down by the Department of Tirade and Industry The Itua is authorised by the Depart m ent of 
Trade and Industry and isa ‘wider-range' in vestment under the Trustee Investments Act, 1961. 

MANAGERS. Hu Royal London Unit Trust Managers Limited. Registered in Cardiff No. 1539295. 

Registered Office; Royal London House. Mid dlebo rough, Colchester. Essex COZ IRA. 

Telephone: (0206) 576115 (Dealing only). A wholly-mimed subsidiary ofThe Royal London Mutual Insurance 
Society Limited. Member of the UoitThist Association. 


INVEST NOW FOR A GENEROUS DISCOUNT OF UP TO 25; 




Surname (Mt/Mn/Miss). 


BY POST: 

To; The Royal London Umt Thist Managers Limited, Royal London House, 

Middleborotigh, Colchest er, Es s ex OOl IRA. 

I/We wish to cake advantage 

of your Discount Operand invest £. ■■■■-. (minimum £500) 

in The Royal London European Growth Trust it the initial offer price of 50plcss 
1% discount {2% fbr investments of £5,000 or more) for applications received by 
29th May 1987. 

BY TELEPHONE; 

Yfrn may if you prefer; telephone your instructions direct to our unit crust dealing 
staff an Colchester (0206) 576115 on any business day between 9 am. and Spun. 

Vfe «h*H seed your fuQ same and address together with derails of the amount 
chat you wish to invest- {M inim um j£500). It you telephone then do not complete 
the coupes. A Contract Note will be seat to you on the next business day giving full details 

ofthepm^^g^ment ROYAL LONDON 

CALL UZUu O/OllD ON ANY BUSINESS DAY UNIT TRUSTS 


A ch eque made payable to The Royal London Unit Trust Managers Limited is enclosed. 
1 am/we arc not less dun 18 yean old. 



Hue Names (in full). 
Address 


(SLOCK LETTERS PLEaIEj 


Signature. 


c yN<- 


Daze. 


(Joint applicants should all sign and p vest ware details.) 
Offer not available so rendenu of tbe Republic of Irclaad^^ 


- r/T Nb 












\ 

V 

\ 



VUI WEEKEND FT 


Financial Tiroes Saturday May 9 198" 



HAMIlIBf 




Milan, 18 & 19 May 1987 

I talian hanking and finance 'and the impact of die 
financial services revolution in Italy provide the 
subject matter for rhe first day of this year’s Milan 
conference. Major international questions 
including issues of interest to Euromarkets 
practitioners are to be discussed on the second day. 
Among the speakers are:- 

Os Bettino Crazi 
Former Prime Minister. Italy* 

rhrNerioNesi 

Banca Nazionale del Lavoro 

Dr Raul Gardini 
Gruppo Ferruza 
Dr Guido Vitale 

Euromobiliare SpA 

Dr Massimo Russo 

Economic and Financial Affairs Directorate 

Commission of the European Communities 

Mr Teruyoshi Yasnfuku 

The Sanv.-a Bank Limiced, Tokyo 

Mr Stephen I Danzamky 

Special Assistant to the President of the United States 

The Rt Hon Penis Healey, ch. mbs, mp 
Former Chancellor of the Exchequer; UK 

Mr Jack Hennessy 

Credit Suisse Firs: Boston ltd 

Mr Win Bischoff 

J Henry Schroder Wagg & Co Limited 

Mr Richard Lutyens 

Merrill Lynch Europe Limited 

Mr Richard Lehmann 

Citibank NA 

‘Subject to final confirmation 

A FINANCIAL TIMES 
INTERNATIONAL CONFERENCE 

in aaodjtkm with 

4 nj (Assodazione a 
/V 151 Bancaria Italianal 


Cafscoruan 

Airways 


EUROPEAN BANKING 

To: Financial Tunes Conference Organisation, 

Minster House, Arthur Street, London EC4R 9 AX. 

Teh 01-621 1355 Us 27347 FTCONF G Tele£u= 01-623 8814 

Namr 

Position 


Compan y/ Organise den. 
Address - 


Country. 
Tel 


.Tlx. 


TypaofBusinAss_ 


Business Opportunities 


MET INTEREST 


HIGH YIELD ACCOUNT 
ALL AMOUNTS 


£500 min. 
101 % P-a- net fixed 


Interest may be paid annually, half-yearly or, for deposits 
over £5,000, monthly. One year’s notice to redeem, no 
penalty during notice period. For full details simply send 
this advert with your name and address. 

Inquiries from brokers, financial advisers, etc., welcomed 
Tick your requirements 

BRADFORD INVESTMENTS PLC (D5) 

91 M annin gham Lane, Bradford, West Yorkshire BD1 3BN 
Phone: (C274) 723748 or Answerphone (0274) 737548 
Licensed Deposit Taker Established 1372 


«w) m»n jgefTMfll in UK. Isle a I 
Ounnol i&iirn-*. Tuna. Pranu. Ubarit, 
Gtoalur, None *.oi»j.r*c. 0on«*« 
«mnn 

^INTERNATIONAL^ 
CORPORATE SERVICES _ 

S mlnrfi M BMW, Maw apfcy n gjg , 
finite, lala of Man. Tali 1002*1 2BBQ0 
Tala : 628654 Salact Q 
Fbu 0024 20380 
l nnfctl Reorescnrtfve: 

Salact CorpnH Sanrfcaa IUK3 Ltd. 
Standbraoi " 

2-0 OM Bond Snob 
LondonW.1. 

Td? 01-403 *244 

: 28247 SCSLDM B 
‘ r: 01 -491 0005 



NEW SPORTS PRODUCT 

Financial Partner sought to par- 
ticipate in second stage develop- 
ment of exciting new soccer 
related indoor/outdoor game. 
World Patents Pending. Initial 
development and marketing 
complete, international sales 
potential with representatives 
appointed in the U.K. and Japan. 
Telephone: 06515 204 


INCOME FOR UP TO 15 YEARS 
Funds Required For 
Investment in 1st Mortgages 
along Spain’s 
Costa Del Sol 
Return 8-15*4 
EUROPEAN INTERNATIONAL 
MORTGAGE FUND 
Paaw Maritime 13. 3A Malaga 
Spain 2S019 - Tel: (62) 22 85 14 


PLC CORPORATE PARTNER 

Innovative company, supplying aer- 
vices to the construction industry/ 
home improvement sector encom- 
passing a ll mayor cor. a true Ilona 

undos. £300,000 expended on start- 
up and development coats to date. 
Excellent growth prelected, 30V, to 
50% equity available to suitable 
enrporato pic. 

Please reply irt confidence tet 
LESTER LUER. FCA 
33 Great James Street 
London WC1N 3HB 


60 ft. RIVA 
MOTOR YACHT 

New, May 1986. Only 174 houn 
use. Equipped to full RIVA 
specification plus £30,000 of 
extras. Cost today over 
MUST SELL for tax reasons by 
31st May, 1987. Will accept 
larger yacht or aircraft in part 
exchange. Contact Deanne: 
Tel: 0532 501450 or 
Telex: 557165 


DISTRIBUTOR/AGENTS 

REQUIRED 

A MIDLAND 5 TRANSDUCER 
MANUFACTURING COMPANY 
REQUIRES A UK ft EUROPEAN 
DISTRIBUTION NETWORK 
to market a comprehensive range 
of load cells. Instrumentation 
and pallet weighing equipment 
Write Box F73S7. Financial Times 
10 Cannon Si. London EC4P 4 BY 


Legal Notice 


No. 008399 of 1966 
IN THE HIGH COURT OF JUSTICE 
CHANCERY DIVISION 
IN THE MATTER OF 
TELEVISION SERVICES 
INTERNATIONAL PLC 
AND IN THE MATTER OF 
THE COMPANIES ACT 1S65 


NOTICE IS HEREBY GIVEN that the 
Order of the High Court ot Justice 
(Chancery Division) dated the 6th 
April 1987 connrming the cancellation 
of the Share Premium Account of the 
above-named Company of El. 63 1.426 
was registered by the Registrar ot 
Companies on 23rd April 1387. . 

Dated this 6th day of May 1987. 
BERWIN LEIGHTON of 
Adelaide House 
London Bridge 
London EC4R SHA 
(Ref: IL) 

Solicitors for the above-named 
Company 


* FINANCE &THE FAMILY 



A matter of murder 


I am a self-employed engineer 
operating In London. My 
premises is a small mews 
building the freehold of which 
1 purchased 15 years ago. To 
the south adjoining my property 
is an area of unused land. Due 
to the poor condition of my 
workshop I must either rebuild 
or move elsewhere. If X rebuild 
X feel I must hare the extra 
area of land to the south. Can 
you advise on the procedure 
to follow in order to establish 
who has title to this unused 
land? 

In addition there is a Sat 
situated directly above the 
driveway into the mews which 
belonged to the one-time owner 
of my workshop. I knew him 
very well and unfortunately 
he was spectacularly murdered 
some years ago. No relatives 
have ever been traced and no 
documents have been proffered 
to prove title to the property. 

I have kept this flat locked and 
secure since his death. Can 
I claim title to this property? 

If so, how do I go about ft? 
You may be able to make a 
claim to a possessory title to 
the flat (based on “adverse 
possession”) once a period of 
12 years since you took control 
of the flat ha 5 run. However, 
this could be difficult to estab- 
lish in respect of such period 
as you have kept the flat locked 
solely in order to secure it for 


the rightful owner as opposed 
to using it for yourself. You 
should make at least some use 
of the flat henceforward, e.g. to 
store things of yours in. When 
the 12 years have run, consult 
a solicitor. Xt may prove difficult 
to get any information about 
the owner of the unused land. 
If you fence it off and use it 
for your own purposes, keeping 
everyone else out, you may 
start another 12-year period 
running. A parcels search at 
the land Registry will show if 
the land is registered and you 
might persuade the Land 
Registry to forward a letter to 
the registered proprietor. Other- 
wise there is little you can do 
beyond making full enquiries 
locally. 


Author’s 

expenses 


About six years ago I began, 
with a colleague, to write a 
scientific text for a learned 
society. The work took about 
four years to complete and, 
with the further time necessary 
for printing, achieved 
publication only a few months 
ago. 

I expect to receive the first 


modest royalties before the 
end of the month — about 
£2,750 for the year, and X 
would guess no more than three 
times that in total over the 
book's lifetime. Naturally, 
having spent much of my 
spire time producing it, largely 
for professional rather than 
financial reasons, X would like 
to minimise my liability to 
tax. I hare retained receipts 
for the necessary typing work 
on the manusqript, which am 
presumably be offset against 
the royalties, but understand 
that it Is also parable to 
spread the Income, for tax 
purposes, over a number of 
years. 

What Is possible, and how 
should I set about doing It? 

From what you say, it seems 
clear that you axe assessable 
to income tax under case VI 
of schedule TJ on the royalties 
(as opposed to being assessable 
under case XX on the set profits 
of the vocation of author). That 
being so. there is no statutory 
income-tax relief for anything 
beyond the cost of collecting: 
the royalties, but your tax 
inspector may not object to the 
deduction of modest expenses. 

It is doubtful whether a 
claim under section 389 of The 
Income and Corporation Taxes 
Act 1870 will be beneficial but 
fortunately you do not have to 
make your mind up for a year 
or two yet. 



No tegs! responsibility can bo 
accepted By the Financial Times lor 
the enswers tpren In these columns. 
AH Inquiries w III be answered by 
post me soon ee possible. 


Partners 
and tax 


As equal partners in a ear hire 
business, my friend and 1 each 
acknowledge unlimited liability 
for all our business defats. 
Does tfi iff liability extend to 
the Inland Revenue as well? 
According to my reference 
book, “partnership is not > 
legal entity ” in the eyes of 
the tax authorities, qud 
therefore the profits are 
apportioned in full to the 
partners, who are then charged 
according to their appropriate 
individual drcmnstances. 

Were one of us to d isa pp ear , 
however, would the other be 
held liable for his tax? 

The answer to both your 
questions is yes. As Lord Den- 
ning explained, in Harrison 
(Inspector of Taxes) v Willis 
Bros, “the liability of partners 
to pay tax is the joint liability 
of all the partners, and not the 
several liability of each. 11 


CHESS 


GARY KASPAROV and Anatoly 
Karpov are scheduled to begin 
their fourth marathon for the 
world chess title in October. 
One might expect diminished 
interest at the sight of this pair 
yet again occupying centre 
stage, but in fact the number of 
cities eager to host the 24-game 
series has increased. 

Five sites have put in bids 
for the 1987 match, while 
London and Leningrad were the 
only contenders in 1986. Seville, 
with an offer of f 1.17 m prize 
money, has made the largest 
bid. Others in the runing are 
Sochi In the USSR, Seattle, 
Madrid, and the United Arab 
Emirates. FIDE, the world chess 
federation, will make a decision 
this month. 

Meanwhile, zonal eliminators 
are already in full swing to 
decide new challengers to K and 
K in the late 1980s. Zone 11 for 
East Asia in Jakarta provided 
a spectacular fiasco when Ian 
Rogers, Australia's grand- 
master. withdrew after making 


two formal protests that one of 
the Chinese was losing deli- 
berately to compatriots. 

Indonesia’s No 1 joined 
Rogers's boycott, despite pres- 
sure from the organisers, who 
viewed the tournament as a 
chance to improve political 
relations between Jakarta and 
Peking. The dispute was re- 
ferred to FIDE, and at last 
report the event is likely to be 
re-run this month. 

The USSR Championship, 
played at Minsk, in March, 
was the strongest zonal but a 
confusing affair for participants. 
Three of the top six finishers, 
including Belyavsky who tied 
for first with Salov, were already 
seeded to the interzonals, and 
only three grandmasters could 
qualify directly. This week’s 
game takes a paradoxical 
course: Black captures the 

QNP with his queen, tradition- 
ally a recipe for disaster, but 
it is White’s queen which is 
trapped in mid-board. 

White: A. Belyavsky 
Black: V. Gavrikov 
Grnnfeld Defence (USSR 
championship 1967) 

1 P-Q4. N-KB3; 2 P-QB4, 
P-KN3; 3 N-QB3, P-Q4; 4 N-B3, 


B-N2; S Q-N3, PxP; 6 QxBP, (Ml; 
7 P-K4. N-R3; S B-K2, P-B4; 
9 P-Q5, P-K3; 10 (H), PxP; 
11 PxP, B-B4; 12 B-B4, Q-N3- 
Karpov-Kasparov, game 19, 
1986, went 12...RK1; 13 QR-QL 
N-N5; 14 N-QN5 when Karpov 
won easily and Kasparov 
promptly sacked an aide for 
allegedly selling moves to 
Karpov. However, Gavrikov is 
the world expert on this varia- 
tion and he prefers the queen 
attack. White’s best reply is 
13 N-KR4 to dislodge the active 
bishop. 

13 P-KR3? QxP! 14 P-N4, 
B-B7; 15 QR-B1, N-Q2; 16 N<2N5, 
B-R5I (so that if 17 QxB, QxB 
Black is a safe pawn up); 17 
N-Q6, N-N3; 18 Q-K4, QR-Kll 
White's queen is skewered 
against his bishop, and Black 
emerges a piece ahead. 

19 NxR, BxN; 20 N-K5, BxN; 
21 BxN, PxB; 22 QR-K1, B-B6! 
23 QxR ch, BxQ; 24 RxB ch, 
K-N2; 25 P-06. QxP: 26 Resigns. 

PROBLEM No 676 
White to play and mate in 
two moves, against any blade 
defence. Tins week’s problem 
is the opening round of the 
Lloyds Bank British Problem 
Championship. A correct 



WHITE (10 men) 


answer qualifies you for a 
harder postal stage, leading to 
a final in London in January. 
1988. The eventual champion 
wins £100 and will be selected 
for the British team in the 1988 
world solving title contest 
To compete, simply solve the 
problem and seed White's first 
move to Lloyds Bank Sponsor- 
ship, 152-166 Upper Thames St, 
London EGA Marie your solu- 
tion “Financial Times.” Closing 
date is July 1, and there is a 
special prize for overseas 
entries. 

Leonard Barden 


Court battle 


Seme time hack when X 
disposed of my leasehold 
interest in a property X 
had jointly with another 
person, we made a Capital 
pin equivalent to two 
persons’ total annual 
exemptions allowed under 
the Capital Gains Tax rule, 
less incidental costs on 
acquisition and disposal. 

But subsequently, the new 
tenants did not pay the not, 
arcd the landlords made 
claim against both of us for 
arrears of rent, cost of 
obtaining possession of the 
properly and for dilapidations 
which came into a five 
figure sum. We settled t his 
out of court for a four figure 
sum bearing in mind that the 
legal costs involved in 
pursuing the matter would 
have been much more and. 
at the end of the day. we 
were not also interested in 
taking back the lease at Urn 
outrageous terms it was 
being offered to us. 

Bearing this in mind, can X 
claim the part of settlement 
payment made to the landlord 
and the legal cost incurred 
in defending this action as 
expenditure incurred in 
defending my rights under 
the Capital Gains made? 

No: you cannot claim losses 
which you incurred by reason 
of your status as the contrac- 
tual tenant as an allowable ex- 
pense in computing any 
liability for Capital Gains Tax. 
stiff less when the losses were 
incurred after the gain was 
made. 


Unmarried 


owners 

L A couple entering into the 
Joint purchase of a house 
could he faced with the 
problem, tamming from an 
ending of their “ relationship,” 
ot a refusal by one party to 
sen. la it passible to have a 
legally binding contract which 
would enforce a sale on the 
decision of one party ? If not 
die outcome could be appalling 
as obviously both would not ' 
wish to remain in occupation. 

2. Are there any other economic 
snares peculiar to such a 
venture? 

3. Are the rights of a "common 
law wife” similarly applicable 
to a “common law husband ”? . 
A What is the legal definition 
of u common law wife/ 


44 

taMband”? Dow a time factor 
enter Into this? 

It is possible to make express 
provision in the conveyance or 
transfer to the two people who 
are cohabiting stating precisely 
W hst their interests in the 
property are and providing fur 
sale on the termination of their 
relationship. If the full 
of each person’s beneficial 
interest * ho property is 
defined by reference io an 
equitable tenancy in common 
Sere should be little risk 
except in the case where one 
person dies and the survivor 
has been maintained by the jf 
deceased- Thorp is no such T 
concept In English law as a 
common law wife (or husband). 

It would be wise to consult a 
solicitor to ensure that a suit- 
able formula is used in the 
conveyance or transfer and in 
any ancillary documentation. 


Forced 
to sell 

ny wife owns equally with two 
others three commercial 
properties. There is no formal 
document of partnership. 

1. — Can one or both of the 
other partners force the sale f 
of any of the properties against 
my wife’s will? Sly 
understanding is that if one or 
both wish to withdraw from 
the ownership they are 
required by law to— - 
a First offer their share to 
the remaining partner(s). 
b If (a) is not taken up they 
can then offer their share for 
sale on the open market, but 
not the whole property. 

1 — My wife has In her win to 
leave her share of the 
properties to our two children. 

Can the other owners of the 
properties object to this and 
oppose the introduction of new 
partners? 

It is unclear from your letter 
whether there is a true partner- 
ship or merely joint ownership. ^ 
Generally speaking * sale can V 
be insisted on by anyone of 
the owners; and there Is no 
right of pre-emption vested in 
th e other owners. Provided 
that any joint tenancy in equity 
has first been severed (made 
into a tenancy in common in 
equity) your wife can assign or 
dispose by will of her share as 
she pleases unless there is a 
true partnership in which the 
personal contribution of each 
partner is a material aspect in 
the commercial venture. 


Businesses For Sale 


SPORTS COMPLEX FOR SALE 
SOUTH LONDON 

New sports complex for sale due to ill health of present owner. 
10 acres site with many facilities including: — 

3 football pitches, 2 cricket squares, 4 squash courts, one of 
which is glass-backed and seats 75 spectators, 4 tenni courts, 
swimming pool, fully equipped gymnasium, solarium, saunas, 
jaccuzl, function room to accommodate up to 300 people, 2 
smaller function rooms for parties of 10-20 people, bars, 
c hangin g rooms and accommodation for resident manager. 
Offers of approximately £2m invited. 
SUIposnmETAOINReply to P.O. Box H197S 
Financial Times, 10 Cannon Street, London, EC4P 4BY 


HOLIDAY STATIC PARK 

IN POPULAR 
NORTH DEVON RESORT 
123 pitches, plus managers' 3-bed 
unit, dub, shop, utility blocks, 
80-plus fully serviced recent 
caravans, balance of fleet in 
good order, set in approximately 
5 acres with superb views over 
beach and bay. 

Offers in the region of 
£400,000 plus welcomed. 

Phone 0922 5607) 


READERS ARE RECOMMENDED 
TO SEEK APPROPRIATE 
PROFESSIONAL ADVICE 
BEFORE ENTERING INTO 
COMMITMENTS 


FOR SALE 

Established. Well Respected 
PflQFn/iKiE UK-BASED 
COMMODITY & FINANCIAL 
FUTURES FUND MANAGEMENT 
COMPANY 

with funds In excess of £2. 5m 
under management 
Trading is baaed on b proven 
computerised trading system 
Principals only oleosa reply ra: 
Box H1SBB, Financial Times 
10 Cennon St. London EC4P 4BY 


CHEMIST BUSINESS 

2 UNITS 

HIGH CLASS WEST LONDON 
Turnover £750k plus fhtob gp) 
Leases usual terms 
Total 1600 aq It 
Price: £700k plus SAV 
Long Established 

Write Box H19BB. Financial Times 
10 Cannon St. London EC4P 4BY 


Hotels and Licensed Premises 


GUERNSEY 

OFF-SHORE INVESTMENT BUSINESS 
20% flat rate taxation after allowances 
Hotel/self-catering complex. 2 Crown fully licensed hotel 
complemented by 10 s/c maisonettes all situated on a prime 
west coast site with superb sea views. Accommodates 100 
adults total Currently seasonal business under management 
showing excellent returns. Separate owner's luxury flat 
Ref: 8S2 PRICE: £980,000 

Apply: Wightrrum A Partners. Estate Agents - Tel: 0482 27768 


Businesses Wanted 


WANTED TO ACQUIRE 

SMALL BROKERAGE FIRMS OR 
LICENSED FIMBRA MEMBERS 

Our riient wishes to acquire a Shell Company or small 
operating firm with the requisite licenses as London Stock 
Exchange members or as licensed dealers under the FIMBRA 
. rules, in the UJC 

_ , ifhmedletely In strictest confidence tor 

Sox H1S90, Financial Tunes. 10 Cannon St. London EC4P 4BY 


SECURITY GUARD COMPANIES 

A large well-known international security company wishes to 
ACQUIRE SECURITY GUARD AND 
MOBILE PATROL BUSINESS 
throughout the United Kingdom 
Please reply to Box H19B7. Financial Times 
10 Cannon Street, London EC4P 4BY 


EVERYTHING YOU 
NEED TO KNOW 
ABOUT UNIT TRUSTS 

Forty pages of facte abouf unit irusfe - an ideal introduction for 
the first-time investor. 

'Everything You Need To Know About- Unit Trusts' is a new Unit 
Trust Association booklet designed to answer many of the first- • 
time investor's questions about unit trusts. Its forty pages give 
an unbiased introduction to unit trusts, including chapters on 
'Choosing a Unit Trust and How Unit Trusts Are PricecT. Listed at 
the back of the booklet are all UFA member companies and 
their funds, with useful details — 
on minimum investment 
requirements, dividend- dates 
and availability of monthly 
income plans. 

Single copies of Boything You 
Need To Know About Unit TrustsC are 
available on sending a large 
stamped (30p second class, 40p 
first class) self-addressed envelope 
to: 

Unit Trust Association 
P.O. Box 8 
Stroud 

GbsGL6 7AT 


Rice for bulk orders are 
available on application to 
the Association 



























To CAPTURE THE SPIRIT OF THE EAST 
ONE MUST WATCH CAREFULLY AND MO 1 











E FAST. 





Introducing henderson 

SPIRIT OF THE EAST TRUST. 

Each business day the sun rises on new opportunities in the Pacific region. The 
rewards can be dazzling and elusive. But capturing them demands more than simple 
experience; the critical factors include talent, insight and judgement coupled with the 
ability to act swiftly and decisively. In short, active management. 

Active management is what Henderson Spirit of the East Trust is all about. We’llkeep 
a close, careful watch on eleven diverse and exciting markets. With an investment team 
which has a wealth of experience in these markets - backed by an office in Tokyo. 

Henderson Spirit of the East Trust aims to provide capital growth. It will invest 
chiefly in leading Far East equities - ensuring flexibility. That means the Henderson team 
can take liquidity and re-invest with precision and speed. 

Until 29th May 1987 the fixed price launch offer is 50p per unit with a minimum 
investment of £500, or from £25 per month through the Henderson Investment Builder 
Account. 

Capture the spirit now by sending in this coupon with your cheque. Or talk to 
your professional adviser. 

For further information about Henderson Spirit of the East Trust ring 01-241 5840 
to hear a comprehensive recorded message. 

Investors are reminded that the price of units and the income from them can go 
down as well as up and should regard any investment as long term. 

Additional information 

Distributions of income w3J be paid on 21st May and 21 si November, the first payment being on 21si November 19S7. 
The initial estimated gross annual yield is 3%. 

Contract notes will be issued and unit certificates will be provided within five weeks of payment. *lf you use a professional 
advisor contract notes will be sent ro him. To sell units endorse your certificate and send it to the managers; payment based on the ruling 
bid price will normally be made within seven working days. 

Unit trusts are not subject to capital gains tax; moreover a unitholder will not pay this tax on a disposal of units unless his 
total taxable gains from all sources in the tax year amount to more than the annual exemption limit {£o,b00 - 19S7.'S8). Prices and 
yields can be found daily in the national press. 

An inoal charge of 5.25% of the assets (equivalent to 5% of the issue price) is made by the managers and is included in the price 
of units when issued. Out of the initial charge, manaeerspay remuneration to q ualifi ed intermediaries, rates available on request. 
An annual charge of 1 .25% (plus VAT; on the value of me Trust will be deducted from the gross income to cover administration costs, 
with a provision in the Trust Deed to increase this to a maximum of 2% on giving 3 months’ ‘written notice to the unitholders. 

Trustee: Midland Bank Trust Company Limited, II Oldjewry, London EC2R SDL 

Manager: Henderson Unit Truss Management Ltd, 26 Finsbury Square, London EC2A IDA (Registered Office) 

Registration Number: 856263 England. A member of the Unit Trust Association. 

I To: Henderson Unit Trust Management Limited, Dealing Department, ] 

i 5 Rayleigh Road, Hutton, Brentwood, Essex CM] 3 1AA. \ 


1/We wish ro invest Lz 1 (minimum £500) in Henderson Spirit of the East Trust at the fixed 

price of 50p per unit and enclose a cheque payable to Henderson Unit Trust Management Limited. 

If you wish to have net income reinvested please rick | | 


1/We wish to invest Lz iper month (minimum £25) in Henderson Spirit of the East Trust, 

and enclose a cheque for the first month’s investment payable to Henderson Unit Trust Management Limited. Details on 
how to make subsequent payments will be sent to you on receipt of this coupon. Please send separate cheques if you wish to 
invest both a lump sum and a monthly Subscription. 

This offer wiD dose at 530pm on Friday 29th May 1987. After the dose of this offer, units will be available at the daily quoted 
offer price. Joint applicants must both sign and attach full names and addresses separately. 

I am/we are over 1 8 years of age. 


Mr/Mrs/Thle. 


■Forenames) in I 


Address. 


My professional adviser is*_ 


.Address. 


This offer is not available to residcna of the Republic of Ireland. 


Henderson. 

The Investment Managers. 




John Brennan takes a more 
cheerful “new' 1 market view 


More homes 
completed 


Momt/m 

mourn 

CQMEALQVG- 




OOLL-SHOUSE 


BARRATTS, Wimpey. Tarmac, 
Bros ley and Crest, Ideal, 
Beazer, Bovis, Lovell, Church 
and Berkeley, Prowting, Cos- 
tain, Bovis, Bellway. Bradley . . . 
the full list runs well into five 
figures, so suffice to say that 
there are a lot of housebuilders 
in a business that managed to 
complete more new houses in 
1966 than in any year since 1973. 
Some 172,100 private homes 
were started in 1986. and new 
home buyers can expect to pay 
about £775m to move into them. 

Put that way, the new homes 
market sounds a lot cheerier 
than if you concentrate on the 
usual diet of complaint about 
the cost of building land, and 
the impossibility of making a 
profit in a market where prices 
of new-built homes have to be 
kept in line witb the price of 
alternative second-hand prop- 
erties. 

Tbe site cast problem is cer- 
tainly true, and national house- 
builders have been running 
down landbanhs rather than 
load their balance sheets with a 
forward slock of green-field 
sites. Consortium deals on the 
few big sites that squeeze past 
tbe planners help to contain 
costs. Otherwise there are the 


and where the sales descrip- 
tions concentrate on the ease of 
getting a mortgage rather than 
on anything as dull as square 
footage. 

As for the rest of the builders' 
ouput, qualify' is increasingly 
taking over from quantity. The 
success of this approach is 
reflected in the latest housing 
statistics from the Building 
Societies Association. 

The BSA shows that new 
house prices have been rising 
faster than the national average 
for the past two years. On a 
countrywide view, the average 
price of a new bouse in 1986 was 
£43,647. a 17 per cent increase 
over the 1985 figure. The aver- 
age for all houses in 1986 was 
£38,121, a 14.9 per cent increase 
over the 12 months. 

When you allow for the high 
proportion of cost-conscious 
starter homes in the new hous- 
ing figures, it becomes clear 
that the used property market is 
beginning to lose its grip on the 
pricing of middle and upper 
market new bomes. 

After years trying to sell the 



Prices measured from London 


TRYING TO establish average 
price movements for country 
houses* is a far more daunting 
task than tracking the value of 
less individualistic homes. As 
BiU Yates, head of the residen- 
tial division of Knight Frank & 
Rutley notes in his foreword to 
Baying a Country House, “the 
price of a six-bedroom Queen 
Anne house will differ greatly 
from that of an Edwardian 
bouse of the same size in a simi- 
lar location. No two are the 
same.' 1 

KFScR researchers didn't give 
up though, and the results of 
their work make this new book, 
published by IPC Magazines 
under its "Country Life” brand, 
a buyer's or browser’s delight 

Tbe agents have calculated 
county or regional value indices 
for country houses in 37 areas of 
England and Scotland. There 
are thumb-nail sketches of each 
area covering the basic geogra- 
phy. a little of the area’s history. 


its principal market towns, tne 
main leisure facilities (with a 
distinctive bias towards approp- 
riately counfry pursuits, from 
huntin', shootin’ and flshin' to 
golf) as well as a little back- 


ground on the local historic 
nooses and gardens. The book 


houses and gardens. The book 
also provided an excellent com- 
munications summary for each 
section. Excellent, that is, if 
your view of the world is from 
London. 

Train, road and air links are 
covered, with information about 
the timing of the first commuter 
services of the day. It Is a reflec- 
ton of the main busring interest 
that even in its review of com- 
munications in the Scottish 
Highlands the road distances 
are measured to central Lon- 
don, the trains to Euston, and 
the air links focus on services to 
Heathrow and Gatwick. 

KFScR confirm that it is dist- 
ance from London, or rather the 
actual travelling time from Lon- 


don. that really determines 
country house prices. The prob- 
lems of dealing with averages in 
this market show through in tne 
agent’s attempts to Indicate spe- 
cific percentage increases 
across whole counties. But if the 
percentages look rather blurry 
around the edges, the general 
pattern emerges clearly enough 
showing, as one would expect, 
that over the past five years 
country house prices have more 
than doubled In the traditional 
commuter counties around Lon- 
don and west into Wiltshire, 
Avon, and Gloucestershire. 

Away from- the capital, 
weekend country Jiving bas sig- 
nificantly extended the reach of 
the London-based buyers and 
has helped to raise prices as far 
north as Yorkshire, where there 
already is a strong local market 
for good period houses. Bir- 
mingham buyers have an influ- 
ence on thir surrounding coun- 
ties, while good road and rail 


links to Glasgow and Edinburgh 
— and the regular air rtmcea to 

London — have helped Scottish 
sporting estates to show a 
respectable rise in values since 
1981. Otherwise, prices have run 
more or less in line with those of 
more mundane properties m 
each area. „ _ 

Looking ahead. KK&R J *P*c« 
to see houses around London 
keep their price premium, but 
equal growth could also come 
where road communications 
with the capital are improved 
next. So attention may be dire- 
cted to Somerset and Dorset, 
with the extension of the A»p 
dual carnage ways, to Warwick- 
shire with the A12 improve- 
ments, and south-east Kent with 

«fBuvins a Country House. A 
Regional Guide to Value, to pub- 
lished by Country Life with 
KF&R price E2.95. 

i.B. 


idea that a newly-built property 
with a 10-year National House- 


building Council guarantee, and 
all the advances in standards of 


the gates of rural hospitals 
awaiting the next Health 
Authority spending cuts, and 
eagle-eyed developers able to 
see the scope for half a dozen 
mini-Tudors in place of a 
disused filling station, old 
church, or extensive back gar- 
den. These combine to keep up 
the supply of raw material of 
housing sites. 

Over 60 per cent of housebuil- 
ding land these days comes from 
clearing and building-over 
inner city or former industrial 
land, and so it is increasingly 
rare to And the vast crops of 
identical estate houses that 
came to be seen as the standard 
new home of the 1960s. And that, 
for both builder and buyer, is 
the really good news. 

Roughly half of the new hous- 
ing each year comes into the 
§ tarter home category where 
cost is the main consideration, 
and where savings are centred 
-ue size of the accommoda- 

on. It is here that you still And 
..Iain white painted walls— 
which help to make small rooms 
look as though they might leave 
room to swing at least a kitten- 


construction techniques of 
recent years is a qualitatively 
better bet than a similar sized 
older home, the industry's mes- 
sage is beginning to get through 
to buyers. It is still not possible 
for a builder to compete on pro- 
duct alone in an area where 
there are older properties of a 
similar size for sale, but, as the 
BSA figures show, the premium 
that people are willing for new- 
ness is steadily increasing. 

^ Builders invariably say that 
most of their sales are achieved 
before a prospective buyer goes 
through the mint door. If the 
house or flat doesn't look right 
from the outside, the interior 
tour becomes a cursory formal- 
ity. But if the facade appeals, 
the inside has to be pretty terri- 
ble to dissuade the buyers. The 
sales talk about energy saving 
designs, well planned inside 
lay-outs, and a good standard of 
fittings come a poor second to 
the front elevation and the land- 
scaping. 

All the national housebuil- 
ders— in search of the saleable 
look— now have extensive local, 
regional, or countrywide ranges 


of property types that they like 
to mix together in smaller vil- 
lage-estates. The houses them- 
selves may be off-the-peg 
designs with only mild adapta- 
tions for the local market, but 
the effect of mixing different 
sizes and styles of houses and 
flats in smaller sites is to recre- 
ate the natural mix of actual 
villages. And since cottage style 
homes, complete with lattice 
windows and small porches for 
the mandatory roses-around- 
the-door, are the high fashion 
style of the mid-1980s, that's 
what the housebuilders are tur- 
ning out 

Anyone who did stop to look at 
„tbe new house-building stan- 
dards would find, as the British 
Gas research and development 
division did, that since the 
introduction of more stringent 
thermal requirements in the 
1975 building regulations, 
"houses are now being built 
which, for the same floor area, 
have a heat demand 50 per cent 
less than those of only 10 years 
ago." 

It is impressive. But the fact is 
that the British Gas Research 
and Development Council 
doesn't buy many homes, and 


example. West Germany Inter- 
national standard buildings 
tend to be reserved for top-of- 
the- range homes in Britain. 

Because builders have ha a 
such an uphill struggle educat 
ing buyers that they get what 
they pay for in terms of quality, ' 
new housing in Britain has 
tended to be a more transient , 
'phenomenon than in most other 
parts of the world. It swiftly 


Green wellies 
go flat rate 


John Brennan 
reports on a new 
appraisal service for 
farmers on the 
smaller scale 


for people who do buy, the long- 
term cost savings on energy do 


term cost savings on energy do 
not seem to count for a great 
deal. If they did, there would 
not be the reluctance— that all 
builders report, but which few 
testr-to pay for such things as 
double-glazing, hardwood- 
frame windows, or for the heavy 
duty standards of construction 
that typify new homes in, for 


a target for the home improve- 
ment industry. 

"New" does, on the other 
hand, have a certain rarity 
value In a country with such an 
elderly housing stock Only 14.6 
per cent of the 22 million homes 
in Britain have been completed 
since 196a Less than 8 per cent 
date from 1965 or later, and few 
would consider 20-year-old 
homes “new." Last year's output 
represents a mere 0.8 per cent 
of the total, and they are already 
second-hand. In the final analy- 
sis, however, the critical 
distinction between new and 
old does focus back on to qual- 
ity. 

Basil Bean at the National 
House-Building Council has 
made the point that builders are 
committed to quality building 
but "the housebuilder must con- 
tinue to offer a product that the 
purchaser can afford." 

If buyers become increasingly 
willing to pay a greater pre- 
mium for new homes, as they 
have over the past few years, 
then there is some hope that the 
quality will be more than facade 
deep. 


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BECAUSE FARMERS like a 
bargain, Richard Bailey over 
the next 12 months is likely to be 
clocking up a great deal more 
than last year’s 28,000 miles. 
Since his Cheltenham land 


agency was acquired by Hamp- 
ton Jk Sons, Bailey, a former 


agent to the National Trust, has 
been building up the group’s 
agricultural and estate busi- 
ness. That moves a stage farther 
with the launch of Hampton's 
Agricultural and Land 
Resource Department 

At this point landowners 
might well be tempted by the 
thought “not another one!" 
since rural Britain is currently 
thick with green-booted agents 
advising farmers and estate 
owners on ways in which they 
can turn surplus grain fields 
into leisure parks and silage 
clamps into bijou country cot- 
tages. But Bailey has come up 
with a new angle that reflects a 
clear understanding of an 
industry where the owners of 
several hundred acres of land 
carefully recycle bailer twine. 

The new department offers a 
Oat rate appraisal service, char- 
ging £250 plus VAT for an 


appraisal within 50 miles of 
Chelmsford or London, £300 in a 
100-mile radius, and £350 within 
150 miles. Beyond that costs are 
negotiable, but, as Bailey says, 
“this is just to cover the 
expenses, we don't expect to 
make money on the appraisals.” 

Hamptons, now a small part of 
John Gunn's financial empire, 
has not been overtaken by a fit 
of philanthropy. The aim, 
naturally enough, is to be able 
to expand its land operations 
and act for some of the owners if 
appraisals suggest that there is 
scope to capitalise on under- 
used resources. 

Bailey doubts if there is that 
much scope left to add value to 
properties in the South-East, 
but he feels that there is still a 
great deal that farmers can do 
in the Midlands, the South-West 
and deep South of England, as 
well as the Scottish Borders and 
Wales. 

The big estates already have 
their established land agents, 
but smaller farmers tend to be 
put off the idea of developing 
non-agri cultural income by the 
thought that it would be horri- 
fically expensive to get the 
advice of agents who rarely get 
to talk to anyone under the rank 
of duke. It isn’t, of course. But 
for those who prefer Hampton's 
down-to-earth, fiat-rate-fae 
idea, Richard Bailey’s 
Agricultural and Land 
Resources Team is at Chel- 
tenham. on 0242-514849, or Lon- 
don 01-493 8222. 



SUFFOLK country house 
prices continue to lag well 
behind those to the west of 
London, and despite the. 
delightful combination of a 
listed Grade XL 15 th century, 
timberframe house la a 
conservation village on a 
stretch of heritage coast, the 
fact that “The Mercers' Hall” 


at Walberswlck. Suffolk. Is 30 
miles from Norwich and 36 
miles from Ipswich keeps the 
price of the restored four- 

bed roomed house in half an 
acre of garden down to 
£150.000. Jeremy Carlson at 
Savills in Norwich (0602- 
612211) is handling the sale. 


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At Rortingdean Place, near Brighton Jarvis Brothers & Brewster are just completing an exclusive development of 
A luxury houses and apartments that offer the perfect, secure environment for an elegant and relaxed lifestyle. 

A further phase is shortly to be released and we invite you to visit our show units to see for yourself the quality 
and value they represent 

• Fully fitted kitchens and bathrooms 

• Tennis court, swimming pool, gymnasium, sauna 

• Extensive landscaped grounds 

• Undergound parking • Video security 

• Easy access to London, Gatwick and the Continent 

• 2/3/4 beds, from £] 25,000 

aZjT'”” 11 * Jo im Sole Agents: 

jib !!t cmarm 


JBB 


JanuBnstwni Brawnrr 
Bar Devdopm. 


THE 
BRTITSH 
I LAND 
COMPANY 



'ABfcm Home. Uwa, Eat Sussex 
Trt: 0273 477022 


40 Ctmn*i*M Sows, Ionian WT 2AB 
TctOI 202 SOW 


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A development by Rosehaugh Copartnership Developments Limited ( j|) 

A major new project on the Smiths Charity Kensington Estate 

EVELYN GARDENS, LONDON SW7 

21 Luxury Apartments built to the highest specification, 
and overlooking private gardens. 

- FOR SALE ON LEASES OF 70 YEARS 


Studios £97,500 2 Bed flats from £250 non 

1 Bed flats £142,500 3 Bed flats/duplex from £350,000 


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Financial Times Saturday May 9 1987 


WEEKEND FT XT 


PROPERTY 


London Property 





.* 7 . 












LOWNDES STREET 
LONDON 

C\Y/| SUPERB 
J W 1 FRFPwni n 


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SUPERB 
FREEHOLD 
GRADE E LISTED 
BUILDING 
FOR SALE 

WITH VACANT 
POSSESSION 

MBS SQ.FT. 
OFC5WCES 

4 DIRECTORS' FLATS 
I HOUSEKEEPER'S HAT 

Cl pmkulsr Inures: 

I & Corpentn jM 
Eretuum rrojirMg 
a Cram) London EUse 
^mljrSole Aracs 


IJ.TREVOR&.SONS 


^TWoe Street 
London 5VV»ZLQ 

01-5846162 



Left to right: author Jeffrey Archer, architects Sir Hugh Casson and Richard Seifert, and humourist Frank Muir 



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THE NEW bomes-old homes 
debate normally generates more 
heat than light, since few people 
really have a choice. By the 
time they have settled the ques- 
tions of where it should be, how 
big and how much, the options 
will probahly have narrowed to 
an old bouse or a new one, 
whatever their Ideals might be. 

That is, however, a txresomely 
practical way of looking at the 
question. For residential win- 
dow-shoppers, the debate itself 
is much more fun than the sober 
reality. 

For best-selling author -and 
politician Jeffrey. Archer, it is 
a debate he can argue from both 
sides of the bouse. His ultra- 
modern London flat, on the 
south side . of the Thames, has 
vast glass walls with views 
across to the Tate Gallery and 
along the river over central 
London. ... 

His country home at Grant- 
chester, near Cambridge, dates 
from 1674 and was the vicarage 
where poet Rupert Brooke spent 
his childhood. “ I like' the -con- 
trast,” he says. “I love to go 
from my flat to the country to 
what is one of-.the loveliest of 
houses — a very beautiful, very 
old, rambling cottage.” 

“If you asked me to choose 


which I prefer, it would he 
agony to nave to say. I suppose 
I would say my country house, 
hut I would bate to give up 
my flat” 

Fellow - author Frederick 
Forsyth prefers the old. He 
divides his time between a mid- 
1920s neo-Georgian house in St 
John’s Wood, north London, 
which was “ restored and 
extended in the 1960s,” and an 
1880s* weekend cottage in 
Sussex. “ With rare exceptions, 
I lace the architectural style of 
Tudor, Jacobean and Georgian 
better than the present styles, 
and. I prefer the building 
materials of brick and timber 
to poured concrete and plate 
glass.” 

Humorist Frank Muir is also 
more at home in an old house. 
He feels they are more likely 
to give off “ a happy feelings” 
He describes his 'house - at 
Thorpe, near E gham, -Surrey, 
as a “ glorious mix.” 

“It’s listed Grade II and bits 
go back to 1600, but the front 
is a bit of very bad Queen Anne 
and the side is 1930. It’s not 
a very grand place at all, but 
it’s very pleasant,” says Muir. 

He has been there for 34 
years and adds: “Apparently, 
that’s very unusual these days 
— people seem more surprised 


At the end of the day, the 
decision on the type of 
property to be bought tends 
to be entirely subjective 


that Fve lived in the same 
house this long than that I've 
got the same wife." 

Architect Richard Seifert has 
different ideas. “ Weighing up 
old and new, I prefer new 
homes — other thing* being 
equal — because modem homes 
often are more secure, which 
has become very important 
these days, and with older 
properties you can have prob- 
lems with water penetration. 
Modern building techniques are 
considerably more advanced 
than those used in older 
homes.” 

Seifert lives in M31 Hill 
Village, north London. His 
house is “ partially old and 
partially new — it was built in 
1936 and Fve modernised and 
extended it, so I have the best 
of both worlds.” 

He sees location as far more 


important than age and Patrick 
Ramsay, of estate agent Knight 
Frank and Rntley, would agree. 
But Ramsay also regards this as 
the main reason why “ this 
generation will leave the 
country very little in the way 
of fine country houses.” 

He says: "Planning doesn’t 
allow for major new country 
houses because, if someone is 
willing to spend £600,000 or 
£lm building a major new 
house, they need a site to 
justify it And that’s virtually 
impossible to get unless you 
knock down an existing house.” 
Even with a prime site, archi- 
tect Sir Hugh Casson would not 
be tempted to live in a house 
designed by himself. He laughs 
at the idea. “I do not” he 
says. " like living with my 
mistakes.” But then. Sir Hugh, 
who lives in a 19th-century 


terraced house in North Ken- 
sington, London, would not be 
tempted by a new property at 
all. “I have always lived in 
old houses by preference 
because the rooms are bigger 
for the same Price, the fittings 
are more generous, and sur- 
faces make the right noise 
when you hit them." 

Linda Beaney, of Hampton 
and Sons, is renovating her 
Edwardian house in Essex but 
has also bought a new flat in 
Chelsea Harbour, up-river from 
central London, and she puts 
the financial case for new 
homes: “ The period of 

greatest capital appreciation is 
within the first two or three 
years following completion.” 

But the scale of older proper- 
ties also has its appeal, and 
Beaney says: “People may be 
baying for what they feel to 
be less than the market value, 
particularly if the property is 
in need of substantial refurbish- 
ment.” 

Anthony Cane at Strutt and 
Parker, who lives in an old 
house in Wandsworth, south- 
west London, reports that, as 
far as country properties are 
concerned, there is still a great 
demand for older homes 
” despite the well-pablidsed 
advantages of modem houses 


being easier and cheaper to 
run.” Cane adds: "It seems 
that people seeking a country 
house are prepared to trade off 
the additional work and 
expense often involved in an 
old home for its character and 
charm.” 

Nick Hare of Savills makes 
the point that most of the re- 
built flats and houses in 
London are just that — new 
homes inside old facades. Thus 
buyers can expect to pay much 
the same price for new-built 
and good-quality period renova- 
tions in the best parts of town. 

That said, he points out: 
"Newly-built homes are con- 
siderably more energy-effective 
than old, and modem building 
materials are becoming increas- 
ingly maintenance-free. Al- 
though the initial cost of a 
modem bouse is often greater 
than an old, an older property, 
if poorly maintained, will re- 
quire constant expenditure 
which will soon exceed the 
initial savings.” 

He says that, business people 
baying places in London “ will 
probably go for low main- 
tenance. both in time and cost, 
every time.” But, at the end 
of the day, the decision on old 
or new tends to be entirely 
subjective. 


CHIEF EXECUTIVE'S 
RESIDENCE 
Avenue Road 
St Johns Wood NWS 
72-year lease 
£975,000 ono 
Needs extension and 
minor remodelling for 
which p lanning consent 
is being sought 
Alternatively £1,225,000 
including extension and 
restoration by top 
builder 

ASHBY & HORNER 
Steven Hilton for details 
Tel: 01-377 0266 


JAMESTOWN 

HARBOUR 

lavishly fitted 
FREEHOLD HOUSE 
5 mins DLR 

Ail main rooms South lacing with 
uninterrupted viewa acrosa water. 
Lounge with balcony. Dining rm. 
fully fined kitchen with all appli- 
ances. 3 beds. 1 with vaulted 
ceiling and balcony, fitted units by 
"Personal Touch.** Baihrm, study/ 
bed 4 with on suite shower room. 
ciOBkrm, utility with washing m/c. 
Garage. Extensive patio to water's 
edge. Gee central heating. Carpels, 


WIT LANSDOWNE ROAD, 
HOLLAND PARK 

A bedroom architect converted 
family mais. Original features 
Direct accesc/vlew over glorious 
communal garden to church. Private 
entrance, narquet hall, rocep. kit/ 
dining, bath, shower, utility, off* 
street parking. Outstanding 
investment beet part Lansdowna Rd 
121 yr lease - Oilers c M50.000 
TEL: 01-221 9544 




BLACKHEATH, SJEX 
An Edwardian twin-gabled 
MANOR HOUSE 

Beautifully restored, many original 
features. Detached with crescent 
drivo. 3 recops, 6 beds 
*s an aero grounds 
Qu>ck sale required 

Telephone 858 0446 


ANGEL, ISLINGTON 
MINUTES FROM THE CITY 
Stunning modem designer house 
30lt open plan double volume recop 
Kit, spiral staircase to galletiad 
slutiy'bad 2. largo bath, targe 
master bed. Integral garage with 
clectnc door 
£145.000 FREEHOLD 
TEL 01-251 3S2B 


KENSINGTON 

Luxury block, 3 bedrooms. 2 
receptions, largo kitchen, bathroom 
Guest cloakroom, utility room 
CH. Hot wotor. 125 yr lease. 24 hr 
porter and video security. £195.000 
TEL: 0379 2443 WEEKEND 
01-352 8687 WORK 
01-602 1009 EVENINGS 


BRANHAM GARDENS, 5WS 
3 beds, 2 baths (I en-suite). 
recep., kit., long lease, second 
floor, lift, porter, ind. e.h. 
Offers in excess of £200.000 
Mansion block specious flat 
Tel: 01-373 9271 or 01-602 8474 


New Homes and Developments To the Manor Bom 


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Your chance to own a 
magnificent Country 
house in the middle 
ofTom 

This limbed edition of H magnificent Town 
houses in Brook Green are set within their own 
exclusive mews, dose to the River Thames and 
Kew Gardens, yet with the excellent shopping 
facilities ofKenstagton High Street and 





fitted kitchen, morning room, depnriy 

spacious reception wim balcony utility room, 
garden and garage Video e nt ry phones, burglar 
alarms. electrically operated garage doors and 
security gates to mews entrance, 10 year NHBC 
prote cti o n . 

Only 3 remaining- £525,000 Freehold. 

OPEN VIEWING AT OXFORD GATE, 
BROOK GREEN. W6 

SATURDAY 9tfa SUNDAY 10th MAY 2-5pm 

M £Uis I mm 


01-7493042 


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01-409 9200 

ESTATE OFFICES 


SURREY— 6LACKHILLS, ESHER 

London IS mites - M25 3 miles 



» Dev el opment 





FARMHOUSE 
AND BARN 
CONVERSIONS 

Superbly and 
individually converted 
at: 

Peterborough and 
surrounding area 

Contact* 

HAZELPLEX 

—not “just another builder” 
Tel: 057 287 557/517 


TRINITY LOCK, 
SE16 

Last chance to purchase a bouse 
in this extremely desirable and 
popular development dose to 
Surrey Quay and surrounding 

parkland. 

Comprises: 4 bedrooms, sitting 
room, kitchen/din'r*** room, 
bach, shower, sep. W.C. cloak- 
room. garage, C.H., garden. 

Freehold £136,006. 
DANIEL SMITH 
01-582 5550 


ARCHITECT DESIGNED TRADITIONALLY BUILT LUXURY RESIDENCE 
W.S00 aq ft) EXCL LOCATED ADJOINING NATIONAL TRUST LAND 
6 bodroomt. dressing room. 3 bathrooms, roc cm ion had. drawing 
room, minstrels gallery. 3 other recoption rooms, k ilc hen /break last 
room, cloakroom. Staff accommodation. Kitchen and bathroom fining 
plus floor cavorings to purchaser’s final choice. Triple garage 
14 ACRES FREEHOLD - PRICE ON APPLICATION 
Joint Agents: Henshaws, Rayleigh House. 32 High Street 
Greet Bookham. Surrey - Tel: (0372) S0255 


6 T PARK LANE, W1Y 3TF 


ISLINGTON N5 

3-bed Apartments £118,500-£125,000 

Probably the finest refurbishment currently in Islington in 
one of the grandest tree lined roads. Nine outstanding apart- 
ments to truly luxurious specification. Already one sold and 
three reserved. Own parking. High security. Close Canonbury 
or Highbury stations. Adjacent Highbury Fields green acres. 
Gas CH. Victorian grates/fires. Balconies/terraces. Fully 
carpeted. Double gla 2 ed. Fantastic bathrooms ind bidet. Fitted 
luxury kitchens. Lovely gardens. Lease 125 years. Good 
rental investment for expatriates, or company purchase. 
View tomorrow 11-5 pm 
76 Highbury New Park N5 
Sunday 01-226 6343 - Weekdays 01-341 3060 


KenihrormRoad, Covenn* 

Exdus&edevefepmentofjust 6 luxury homes from 
the Amrd Winning Batratt Premier Collection. 

Prices from £178,000. 

For full dtsaSsltl: 021-550 0303 Mon-Fri9am-5JOpnL 

BARRATT 




STANHOPE MEWS WEST. SW7 — £180.000. Newly built Mews Cottage 
with lots of character. 2 bads, reception, well fined k & b, pretty 
terrace. Newly fitted carpets and curtains throughout. Gaa CH. Garage. 
99 year lease. 

NEW CAVENDISH ST. W1 — From £285.000. A selection of 5 spectacu- 
lar flats nearing completion within an impressive Edwardian block. Each 
flat has 2 largo reception roome, spacious kitchen/broakfeat room. 2 
double beds and 2 baths (1 an suite), carpets fitted throughout. 


MERIVALE MOORE RESIDENTIAL LIMITED 

2a POND PLACE. LONDON SW3 6Q1 - TELEPHONE: OI-SMSSVf 













XII WEEKEND FT 


Financial Times Saturday- May Q I9S * 


London Property 



MAYFAIR, W1 

A traditional Period Townhouse quietly situated between 
Park Lane and South Audley Street, requiring some 
modernisation. 4 bedrooms, 3 bathrooms, shower room, 
drawing room, dining room, study, hall, kitchen. Self/ 
contained flat of 3 rooms, kitchen, hath. Patio. 

_ LEASE 42 YEARS. £645.000. 

ST JAMES'S PLACE, SWI 

An impressive An impressive 5th Floor Flat in exclusive 
location with direct views over Green Park. Entrance Ball. 
4 bedb rooms, 3 bathrooms, shower room. Double reception 
room, kitchen/breakfast room. Lift. 24-bour porter. LEAS E 
30 YEARS APPROXIMATELY. £675,000. _ 

BESSBOROUGH GARDENS, SWI 

An excellent pied a terre in stunning development close By 
to the River Thames, it also has the great advantage of a 
garage space. Double bedroom, reception room, fitted 
kitchen, bathroom, lift. LEASE 98 YEARS. £149,000. 



A selection of luxury apartments in 
tins brand new building in the heart 
of Kensington. 

Communal landscaped roof garden; 
24 bour uniformed porterage; Passenger 
lifts; Video entrance in many apartments; 
Comprehensive fitted kitchens; Wall to 
rp»iHng tiling in bathroom; Double ghremg; 
Fully independent gas central heating and 
domestic hot water; Extensive fitted 
cupboards. 


241 Kensington High Street W8 

IgTSTteS NEW 125 YEAR LEASES^ 
:d roof garden; 1 BE DROOM FROM £155, OOP 

ig e; Passe nger 2 BEDROOM FROM £255,000 

ny apartm ents; 

chens; Wall to 3 BEDROOM FROM £310,000 

Double glazing; SOLE agents 

tral hea t i n g and fTircTPiyrnYC 

etensive fitted CH 


29 Wilton Crescent, 
Belgravia, SWI 

with a separate entrance. • . ■ U¥tA 

Wilton Crescent is one of the premier streets in Belgravia ana 
JtottThSrt o fttS finest diplomatic and residential area of 
London. 

49 year lease for sale. Price on application 


118 KrwIn g M o High Street landau WB7KW 
Wee BB55820 F«e 01-724 4432 Telephone: 014S77M4 


Lauranoe 

PO Box 45A 
12 Stanhope Gate 
London WlA 4SA 
Tel: 01-4092222 
Fax: 01-499 3026 
Telex: 261988 


6 Arlington Street 
Sc J4l»0»’s 

London SWI A 1RB 
Teh 01-493 8222 
Telex: 25341 
Fax: 01-49! 3541 


Gt. Cumberland Place wi 

PRICE GUIDE £285,000 

An unusually light and conve- 
niently situated south west 
faring Penthouse in this well 
known RegencyTerrace at 
Marble Arch and which 
merits, farther modernisation. 


3 Bedrooms. Bathroom, Cloa- 
kroom, South Faring Recep- 
tion Room Kitchen, Lift Care- 
taker. CH & CHW. 62 Years. 

40 Connaught Street, 
London W22AB. 



mmmmm 


01-262 5060 


Chkstrrtons 

V"-' ;v. p K u:i,» E N T I A I. 






Battersea Triangle 
Battersea Church Road 
London SWI 1 

Completed to an extremely high standard 
9 houses remain on this exclusive development by BatterseaBridge 

A 3Bednjoms 
A High Quality Carpets 

A Private Garaging 

A Fully Equipped Kitchens 
A NHBC 10 Year Certificate 
A Security Gates 
A Landscaped Gardens 
Prices from £185,000 Freehold 
Show houses open every day ll.00am-7.00pm 
For brochures contact Sole Agents 



•> -j; 


WOOD & GO. 



501 Battersea Park Road, London SW11 01-2280174 


Country Property 


STRUTT & Jim. 
PARKER^' 


KENT— Nr. Canterbury 

Canterbury 2l miles - Fovenhom 51 miles - M2 4 miles 
An outstanding block of commercial woodland 
In an accessible position capable of producing a regular income. 
Mixed woodland with established plantations of well managed 
chestnut coppice. 

Engoys good access from internal rides. 

About 145 acres Region £110,000 

Canterbury office: 2 St. Margaret's Street, Tel: (0227) 451123 

(Ref. 8&D/2793) 


DEVON— Lustleigh 

Bovey Tracey 4 miles - Exeter (M5) 15 miles 

A magnificent 16th century Grade 11 listed manor house part 
dating from the 14th century 

Situated in one of the most papular villages within the Darfimor* 
National Park 

3 reception rams, kitchen/breakfast room, 5 bedrooms, dressing 
room, bathroom, garden room. Stabling, garaging. Well stocked 
level garden, orchard, 2 paddocks, stream. 

About 71 acres Region £275400 

Exeter office: Strutt & Parker. Michelmore Hughes, 24 Southerahay 
West. Tel: (0392 ) 215631 (Ref. I3AB415} 


LINCOLNSHIRE— Burgh le Marsh 

Skegness 4 miles • Lincoln 39 miles 

Imposing Victorian country house, in attractive mature gardens, 
suitable for a wide range of commercial, institutional and residential 
uses. 

4 main reception rooms, playroom, 2 staff sitting rooms, IB 
bedrooms 4 bathrooms. 2 shower rooms. Full gas-fired central heating. 
2 bedroomed lodge cottage. Mature gardens and grounds. 

About 352 acres Region £175,000 

G ra n th a m office: 12 London Road. Tel: (0476 ) 65886 

Ref: 4AB/3634) 


AM Simmons SC Lawrence 

Chsnmd Sorveyocs EstabSshed 177D 

In the exceptional Sooth Oxfordshire 

village of Warboroogh 

Oxford 9 miles, Wallingford £5 miles 
Junction 7, M-tD 65 miles 

UPPER FARM 

GRADE 2 AND 3 ARABLE LAND 

Substantia] family farmhouse, 2 pairs of cottages 
Grain storage for 1300 tons 
Intensive modem pig unit for 600 sows 

IN ALL ABOUT 622 ACRES 

For Sale by Auction on Jane 24th 

(unless sold privately) 

As a Whole or in 4 Lots 

For details apply: 

32 Bell Street, Henley- ao-Thames, Oxon RG9 2BH 
1 Tel: (0491) 571111 

Ref: SJB 




32 Bell Street,. 

Henley-on-Thames, 

Oxfordshire. 


0491 5711111 


V; V - J». 

- ti ' -X ' fm v: 

'-**• » _• - - — • 


«>lTOSTjERTONS 


FALCON POINT, SSI £112,000 

Excellent one bodraom apartment wltii am, zing views of SL Pauls Cathedral 
and the river. Ideal (or tne City. Reception. Kitchen, Bathroom. Balcony, 
UK, Caretaker, Underground Parking. Leasehold approximately 90 yrs. 
TILLER ROAD, LONDON El 4 £61,0011 

Sunny one Bedroom bouse m select development In the heart of the ever 
Improving isle of Dogs. Reception room, Kitchen. Bathroom, Private 
Carden. Garage, Parking Space. Freehold 
GUN PLACE. WAPPING, El £95.500 

Immaculate furnished studio apartment In renowned warehouse conversion 
close to Tube and Tobacco Dock. Hlon security, axcdlem lattlna Investment- 
Bathroom, Retention. Kltcnen. Balcony. Leasehold approximately 123 yrs. 
BRUNSWICK QUAY. LONDON SE16 £90,000 

Exquisite two oeoroom apartment In highly acclaimed Surrey Docks 
development overlook! no Greenland Dock. Rec ration mem. Kitchen. 

Bathroom, Balcony, Car Port. Leasehold 999 yrs. 


CITY DOCKLANDS 0 1-Y’.S 492 


OPEN SATURDAY 10 am-5 pm 


CLABON MEWS SWI 



BAMPTON, OXFORDSHIRE 

• Twenty two elegant bouses and flate with Resident Manager 

• 999' year lease 

• Bulk from finest Cotswold stone under Welsh slate roo& 

© Beanrifiil l a nd s c a p ed gardens 

© Adjacent-to market town centre and shops; close to Oxford - 
easy drive to London (M40) 

• Spacious rooms for your fevouriie furniture 

• Prices up to £80,000 ' 

The full cdonr brochure tells yon all about Tbe Lanes* at 
Bamjttcn- Send for your copy today and phn for a happy, active 
retirement. 

Forthcoming development — 

Moreton-in-Morsh, das. 


DORSET 513 ACRES 

A profitable dairy and com farm 

'86/87 Quota 888,000 litres. 

All ploughable with high, com yields. 

For sale by auction 
on Thursday 4th June. 

Guide price; £750-800,000 including Quota. 
Joint Agents: 

R. B. Taylor and Sons, ‘YfeoviL 
Tel: (0935) 23474- 

Savills, Wimbome. Tel: (0202) 887331. 


asss&izsiu;-; ~.. :r - ■ 


(0202) 887331 


Wessex House, Wimbome 
Denser BH21 1PB 






WINCHESTER 

OFFERS IN EXCESS OF 
£190,000 

Luxury fitted character townhouse 
(Awtrd-wtnnlrg scheme) . Feeing 
cathedral. 2-4 bade. 2/3 recepe. 
garage, courtyard-style garden 

Derails from: 

SMALL ft PTNRS. 
Office: 0962 65250 
Home: 0962 713285 


SENIOR GODWIN 


A unique opportunity to acquire Country properties 
with generous acreages of land 

THE LOWER KING COMBE ESTATE 

NEAR TOLLER PORCORUM. DORCHESTER. WEST DORSET 
COMPRISING A SMALL HAMLET INCLUDING MATCHED 
PERIOD DORSET LONG HOUSE. \^CTORL\NSTONE 
COTTAGE, STONE FARMHOUSE AND S STONE COTTAGES 

together with barns and outbuildings all in 
NEED OF renovaton and improvement. 

Together with: Arable pasture land, woodland, grazing 
end SSce. Extending In all to a total of 605 acres appro* 
To be Sored la 15 Lots with Vacant Possession upon 
ComptetioB 

By Auction at The Cora Exchange. Dorchester, Dorset on 
Friday 15th May 1987 at 3pm 
Auction Office: SENIOR 

Westsate House, 45 High Street. Dorchester, Dorset. 

Tel: 0308 88788 

Solicitors: Lawrence Jones, lg E artcheap, London. 

Tel: 014R 3902 


SOOTH GLAM0R6AN 

M4 4 mites - Sweatee W mile* 

A beautifully presented houae set 
In unspoilt country aid a wltii about 
30 acres of land and having 
glorious views 

Tha principal rasidanco compriaaa 
3,000 eq It of cutaunding accom- 
modation with atlf-conialnad eot- 
taga, fully equipped detached pool 


also includes a self-contained build- 
ing with high-tech communication* 
for Immediate worldwide access. 
Often in tha region of £ 220-000 
are Invited for tbe Freehold 


I Hampton & Sons I 


is ImjMrtat So. Cheltenham. CHoa 
Tel: <0242) 514S4S 




The Houoe on tno Owr ^ 
lymlngton. »AY 

Tol: <0690) 7B026 

NEW FOREST 

MAR BflOCKENHURST, HANTS 
A plctwresoue parlod cottage of 
enormous character, in need of 
complete renovation and modernisa- 
tion, aat in aomo 8 acre* of garden 
and paddock adjacent to tea open 
tonal. 2 bed roc me. 2 reception rme, 
Mtchon. scullery, outbuilding*. 
Price guide: Cl 15/ Cl 20.000 Freehold 
To be eoM by public auction on 

TUESDAY 16th JUME 1987 
in Brockanhurat 


Rentals 


V 



SMITHS GO 

GATE HOUSE, EASTGATE STREET 
WINCHESTER, S023 8DZ. TeL (0962) 51203 

r ~ CLUTTONS, 

] 23 BEAUMONT STREET, 

OXFORD, OX1 2NP. TeL (0865) 246611 


RIVER FRONTAGE 
TAPLOW, BERKSHIRE 

A substantial Victorian Riverside 
Home «rith Specious and elegant 
accommodation. Master bedroom, 
dressing room and bathroom. 6 
further bedrooms. 2 further bam- 
rooms, cloaks, magnf Scene drawing 
room, sitting room, dining room, 
family room, superb kitchen ibreaktasr 
room, (31ft x 30tt>. gas ch. 3 ear 
»rw. about 1 acre with 95ft 
Pja sB ^Ir prgre Offers Invited for 
the Freehold. 

Maidenhead Riverside 
Tel: (0628) 74433 


Building Land 


■AOACHRO, WISTER ROS S E xcepti o n a l 
building site li acre. Beautiful wooded 
souch-laclno, sloolno to foreshore. 
£15.000. Rtf, SD7B. Details: Fimay- 
soo^ Hoebei. Inverness. Tel: 0483 




lYlfSFORD 


SHEFFIELD TERRACE, KENSINGTON W8 

HIGHLY RECOMMENDED . . 

An excellent house in very pretty trae lined street which hae run been 
otally renovated and modemisod to highest standard leaturthg a 
stunning conservatory and pretty garden. Available for long let er 
short summer let. Furnished or unfurnished. 4 trade. 4 baths (on 

suite). 2 race, conservatory. Garden . 

£950 pw - KENSINGTON OFFICE - Tol: 01-727 6*63 

CADOGAN GARDENS, CHELSEA SW3 
A very elogant corner flat situated on the 2nd floor close by Slosna 
Square and Harroda. Lively large windows letting In the sun the whole 
day long. It is In immaculate order throughout, very spacious with 
reception rooms Ideal for •■ntdrtainlng. Top quality kitchen/breakfast 
room with all machines. One of the bedroomi could be for stall. 4 
beds, drawing room, dining room, study (5th bed), 2 shower rooms. 
2 bathrooma. jrit/braaklairt room. Avallabla now. 

£1200 pw - CHELSEA OFFICE - Tel: 01-351 2383 


COMPANY LETS 
SHORT AND LONG 
MEAN MARBLE ARCH 
Fully Serviced Apartments 


3 Plaza Estates M Y| \Ls 


DUKE 


1 MAcr ; i = *.Vh 


S 0'.-Z2i 3100 

Q1-5S1 7S46 II 


Studio from £150 pw 

1 Bedroom from £250 pw 

2 Bedroom from £350 pw 

3 Bedroom from £450 pw 

14 Bm Court, 11 Harrowby Street 

London WI 

Tel: 01-723 7077/258 3688 
Totem 24141 DUKEAP • Fax: 72* 1828 


IDEAL HOME/ARTIST 
RETREAT 

3 bed Cottage on beautiful 350 acre 
privet* lelend with causeway access 
50 miles London 
Walking, beaches, wildlife 
To let turniahed £265 per 
Ir .- l . . calendar month 

MEA ISLAND. MALDON. ESSEX** 
TEL: 0621 6*481 
























5 * » , 


Financial Times Saturday May 9 1987 


WEEKEND FT XU1 


PROPERTY 


MENORCA 

COUNTRY CLUB 



EURO PROPERTY ADVISERS 


Jennie Pinder offers a Portfolio of 
occlusive developments & properties in the areas 




Marbella, Sotogrande, Algarve & the 
Costa Smeralda— Sardinia and 
invites you to a • 

PREVIEW 

Britannia Hotel 

Grosvenor Suite, Grosvenor Square, London W 1 
Tuesday 12th May — 12.00 noon to &00 pm 
27 Now Street Salisbury SPT2PH-- 0722 330847 


AS SEEN ON TV!!! 

. M were mm on a earfous TV documentary and de- 
scribed by Kaproducgrgs a * 90 odhoo«to(>ariaonr 
Don't be confuud - we am ths agent you aan Mat 
and odor fuff iesat safeguards. 

Properties ft unspoilt areas amidst orange gmvea and 
ptae Iran at kloraira, Jevea end CMpe. 

. Ask tor Brochure or send Cl 0 refundable deposit tor 
VHS or Beta Video. . 

COSTA BLANCA VILLAS 

DapiFT.tt-IT Newbury Sweat, WBHIAQE. OXDH 002 BBU 

IbMttMreSSOSfWfcnJ j 


-GUERNSEY 

Secure your Future retirement borne in beautiful, peaceful' Guernsey 
by pure hiring an immaculate ’ spacious 4-bedroom boose ' with 
a large garden at a substantial discount if you buy now with 
a leaseback agreement with the present owner until 1990. - 

PARKS & ASSOCIATES UNITED 
I Sc Intel Street St Pater Pert; Guernsey, d 
fxxt MSI 711354 Tetou -UfflVO Telephone* 0411 25790 


John Bremiaii finds that many property enquiries in Ireland come from non-Irish buyers 


A countryside littered with mansions 


i hkhi-; IS a maw in a bar in 
Kilkenny who knows the answer 
to the Irish economy. Unfortu- 
nately, as any passing Taioseach 
will tell you, oar Kilkenny sage 
provides only one of die three 
and a half million different 
views on man a gi n g the finances 
of a country where an 18 per 
cent jobless rate m a sk s the full 
extent of the employment 
problem, 

Charles Haughey, the Irish 
prime minister, and a Taoiseach 
who will have heard all the bar 
room arguments in the course 
of bis long political career, 
faces exactly the same basic 
problem as his predecessors. A 
third of the 3-5m population is 
under 14 years old, and worries 
about existing and prospective 
youth unemployment cast a 
long shadow over the success in 
squashing the inflation rate 
from more than 20 per cent at 
the beginning of the 1980s to 
an estimated &8 per cent for 
this year. 

One effect of the country's 
economic problems has been the 
decline m the international 
value of the punt Currency re- 
alignments within thft limits of 
the European Monetary System 
have aimed at keeping the Irish 
pound at a discount to sterling, 
since export^ to Britain account 
for 30 per cent of Ireland's 
overseas sales. 

That has kept exporters 
happy, and it has also had the 
effect of making Irish residen- 
tial property 10 per cent 
cheaper for incoming buyers. 
Since Irish homes start off at a 
vast discount to any equivalent 
property in the UK, “ you get so 
very much more for' your 
money,” says Christopher 
Stevenson, “ that compared with 
prices over here, there are real 
bargains.” 

Christopher Stevenson Inter- 
national (048839.654), which 
has an associate arrangement 
with Knight Frank & Rutley, 
handles more than its share of 
the international stud 

farm sales around the world. 
Stevenson reports that " I*ve 
got half a dozen really serious 
buyers looking for horse- 
orientated farms in Ireland at 
the moment” 

. There are two magnets for 
the. horse breeders. Price and 
tax. 

“The average buyer is not 
in tiie super rich league, and 
although quite a few are, they 
are not going to pay more than 
the going rate.” So, with cal- 
[ culators out and bare land for 
studfarms selling for as much 
ps n 2-000 an acre around New- 
market it doesn’t take long to 


work out the odds in favour of 
buying in prime Irish horse 
country, where prices are 
nearer £1.700 an acre. “You 
would normally calculate that 
stud land would be two and a 
half tfmM agricultural land 
values in England," explains 
Stevenson, “and Ireland is so 
much less expensive.” 

Stevenson’s customers want 
access to Dublin Airport the 
Curnth, and the bloodstock 
auctions. Mini-estates near to 
Shannon Airport or Cork are 
“ better than not." 

The second draw leads back 
to Haughey, the only finance 
minister in recent years to 
have misled one of his own 
budgets because he’d fallen off 
his horse. 

It was Haughey who, in 1969, 
made the fees from stallions at 
stud in Ireland tax free. He 
also created the tax fee regime 
for resident artists and writers 


{Exotic religions groups 
looking for secluded 
mansions seem to ran 
into a surprising 
number of objections? 


who can persuade the Revenue 
Commisstoners' independent 
panel of experts that their work 
is of " cultural or artistic 
merit." 

But it’s those tax free stud 
fees, and the way in which 
Ireland's favourable tax regime 
has made the country the 
centre of the multi-billion 
pound European bloodstock 
industry, that has provided the 
main attraction for the inter- 
national racing set. 

“ There are a number of 
Germans, French and Swiss, 
lots of continentals from across 
Europe, and a few Americans 
— although they are not as 
active as they were — looking to 
buy at the moment” Stevenson 
even reports a limited amount 
of Arab interest, although the 
days when there seemed to be 
queues of sheiks buying have 
gone. 

The plan to open a financial 
trading centre in Dublin, with 
international dealing and back- 
up jobs for an estimated 7,000 
finance house staff, should help 


to draw in another range of 
international home buyers. And 
the Irish police, the Garda, now 
claim to have begun to get on 
top of the epidemic of car 
thefts and burglaries in and 
around the capital. 

Jim Deegan, who opened a 
London office of Keane 
Mahoney Smith (01-493 8870) 
earlier this year, does get, “a 
number of people like poets 
and actors and writers who are 
attracted by the freedom from 
tax.” Otherwise, tax doesn't 
tend to rank quite so hi g h in 
the priorities of the other main 
categories of Irish property 
buyers. 

“ Naturally enough there is a 
section of the Irish community 
that has done pretty well here, 
in construction and other fields, 
which does yearn to have a nice 
property back home. But 80 per 
cent of our inquiries are from 
non-Irish buyers, from people 
in Britain and from overseas, 
because it is sheer good value. 

“ People are trading down 
from a property in England, 
putting most of the money away 
and buying a better property 
in Ireland for a fraction of the 
cost of their old home.” 

Companies looking for resi- 
dential headquarters make up 
the third group of buyers: 
“We've had considerable suc- 
cess with Arab banks who want 
properties which are accessible 
to London and which are iso- 
lated enough to be secure. In 
fact, quite a lot of buyers look- 
ing for small European head- 
Quarters are baying country 
properties outside Dublin.” 

Competition oq air fares and 
services has radically altered 
the cost and the frequency of 
flights to and from Ireland. 
There are more regular services 
to the airports of Dublin, Cork 
and Shannon, and the return 
air fare from London to Dublin 
has been reduced to £85 with- 
out the complex restrictions on 
pre-booking and travelling 
within a set period. 

“ It really has opened up the 
air services,” says Deegan, 
“and new services to Water- 
ford and to Knock — Or Con- 
naught Regional Airport — open 
up other areas.” 

As a very rough guide, prices 
of period properties in acces- 
sible parts of the Irish country- 
side are about 50 per cent to 
60 per cent cheaper than in 
equivalent parts of Britain. 
Compared to prime central 
London, or home and ’shire 
county properties, prices in 
Ireland look even cheaper, and 
for people considering a second 




t ^ I • ■ 

' -V 7- : : 


*2,- ‘ir£- 



-m 


Ballintubber Lodge, Mldleton, County Cork. A restored, four bedroom Georgian* 
Edwardian home in 26 acres of garden and groundsTfor sale at IR£ 170,000 
through Keane Mahony Smith (London 493 8870; Cork 270311) 


home, there are a mass of com- 
fortable properties available for 
less than the cost of a derelict 
fa^m bam in the West Country. 

“Holiday homes tend to con- 
jure up the image of caravans 
and little chalets,” says Deegan. 
“ But you can, for instance, find 
a very substantial two-storey 
farmhouse on the West Coast 
with two or three acres for 
£55,000.” 

What attracts Stevenson’s 
clients — apart from the horses 
—Is the fact that “there are 
thousands more country houses 
in Ireland than in England.” 
The countryside certainly is 
littered with the kind of minor 
Georgian mansions that would 
command upwards of a quarter 
of a million pounds within two 
hours* train journey of London. 

Those in perfect condition are 
likely to cost no more than 
£120,000 to £150.000 within easy 
distance of Dublin. Less well 
appointed houses, says Deegan, 
are generously discounted, with 
prices allowing for the costs of 
refurbishing. 

There are no rates on 
properties in Ireland, and 
although there is a Residential 
Property Tax chargeable at the 
rate of 1.5 per cent a year on 
the xcess value of properties 
worth more than £70,000, there 
are so many exemptions and 


Overseas Property 


FaCowing dieopcnmg r tiris summer, of a magnificent new manna, 
the exduave, waterside development afPuerto Sotogrande _will 
offer the most complete range of sport and leisure facilities in the 
Mediterranean. For foil details ;a£ the limited number of superbly 
■frm'gTwl muring apartments, with pices ranging from £22300 to 
£200,000, write to: Puerto Sotogrande, 2J H21 Street, London 
W1X 8AS or telephone 01.493 1333. 


PUERTO 

SOTOGRANDE 


Rnraepoob nd udet ef aopqs 
sandy bodies. 




GShrriTaiy wimitt tt c rPpn taiipML AnexttaivedeTckipinqrtof 

oDceapunmceSsbie from Spam, is bukmdfinHi-ommdic wyingbeasttndard. 

just 15 minunaiwqy. 

A magrafleag nc wfall-sayka ca rias. with eoay&c ^ T .V., lefephooc, md 


Sqtiiii eiiissi 

»ii r 


z again sccc Mde from Spam, is 
i IS imnuiaiwaf. 



ust 2% hours from London 


TTibIiI ilmiflnlf umianitfiH inrim, riiting, THtrr, ntF^r nf 1 — ^ **, ‘***“ l1 — U1J 


ONMIOU \J Jill I’.KIIWMAIIOIM.. 

< .Kt TSYLNOK SQL \RL. ! .OM JON. I l l.SlYW l-tli WAV 

1 2 -no .»m - VUO pm in the (it»»vvon«r Suite. iji 

ill :is--oi.i,il miii uill: l iiiu I’lopi i l\ 

32333235^ 


wf -iii 

■EL, Sm 






allowances that, as Deegan 
says, “people end up paying 
buttons.” 

Stamp duty on purchases 
ranges from 2 per cent to 6 per 
cent of the cost depending on 
the price of the property. The 
higher rate applies to older 
homes valued at more than 
£50,000, and new houses are 

exempt. 

Non-Irish buyers need to get 
permission from the Irish Land 
Commission, but that’s usually 
a formality unless property is 
larger than six acres and to be 
used for more than residential 
purposes. 

The only problems that tend 
to arise are if yon happen to 
be the kind of buyer who is 
unlikely to fit in too well. More 
exotic religious groups looking 
for secluded mansions as a 
base for their missionary activi- 
ties seem to run into a surpris- 
ing number of local “agricul- 
tural ” objections . . . 

Religion and politics can 
have a wider bearing on who 
buys what and where. Protes- 
tant fanning families, for 
example, have a tendency to be 
extremely selective about the 
people they are willing to sell 
their land to. Otherwise, the 
troubles in the north of the 
country don’t often spill over 
into the housing market. 


A fair number of Christopher 
Stevenson's clients might well 
have ranked as prime kidnap 
targets in the past, and as he 
says news of flare-ups of 
violence obviously deters some 
buyers. 

“ Anything that makes the 
situation worse clearly doesn’t 
improve the market. But, at a 
local level, the political situa- 
tion does not affect individual 
home buyers.” 

Is it tbe case that the local 
managers of the larger and 
more obviously wealthy over- 
seas-owned stud farms and 
estates come to an amicable 
arrangements about political 
matters? 

Stevenson says that “ one 
surmises that it happens. Very 
often the local representative of 
the IRA will be a man of con- 
siderable charm, someone who 
gets on very well in the local 
community. . . Whether people 
on the spot make payments or 
not you don't know, they would 
□ever actually admit it them- 
selves.” 

Jim Deegan says: “We've 
certainly found that since the 
signing of the Anglo-Irish 
Agreement people are a lot 
more relaxed about that side of 
tbings. Buyers are not troubled. 

“ They have far more trouble 
in Wales than in Ireland." 


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XIV WEEKEND FT 


Financial Times Saturday May 9 i&S? 


BOOKS 


Anthony Cnrtis on a new view 
of English writing 

Beowulf to 
Pinter 


THE OXFORD ILLUSTRATED 
HISTORY OF ENGLISH 
LITERATURE 
edited by Fat Rogers. 

Oxford. £17.50. 528 pages 

THERE ARE two ways you can 
read Tbe Oxford Illustrated 
History of English Literature. 
The first is to look at the num- 
erous illustrations one by one 
and read tbe captions to them. 
That way you get a selective 
history of English culture as it 
might have been compiled by 
one of the up-market colour 
supplements. The second way 
is to read the text straight 
through. That way you get a 
fair indication of how Enrlish 
is being taught nowadays, since 
all the contributors have 
appointments in the English 
faculties of British universities, 
Oxford. Bristol, London, with 
the exception of the author of 
the article on the 17th century, 
who is now professor of Renais- 
sance literature in Zurich; and 
Pat Rogers, the editor of the 
whole volume, who is now at 
the University of South 
Florida, but was at Bristol. 

You take away an impression 
of dons conscientiously trying 
to cover an enormous mass of 
material in an absurdly small 
number of words, wracking 
their brains to find bridging 
observations that will enable 
them to move from one group 
of authors to the next. It is a 
thankless task, the result 
usually respectable if nearly 
always uninspired. We start way 
back in the mists of time 
around the year 800 AD, with 
poetry in the Anglo-Saxon 
tongue (translations into mod- 
em English of all the quota- 
tions, luckily); after that it 
seems a long time before we 
reach Chaucer, and go from 
there to familiar ground with 
the early Elizabethans and 
Shakespeare who has a chapter 
to himself. 


Then things become more 
complicated with the rise of 
the novel, essay, political jour- 
nalism and satire with many 
authors of interest and impor- 
tance, some practising more 
than one of these forms. But 
Isobel Grundy and Claire 
Lamont make brave learned 
efforts to sort these matters out 
while not overwhelming the 
reader with a mass of minor 
names. After that Andrew 
Sanders, Bernard Bergonzi, and 
Martin Dodsworth take us 
through the Victorians, High 
and Low, and deposit us safely 
home with Bloomsbury and the 
post-Bloomsbury world of the 
1980s. 

Some idea of the way it all 
works may be gained by noting 
that a minor figure like George 
H issin g, on whom Prof Bergonzi 
is something of an expert, gets 
a page and a bit of precious 
space, containing the bridging 
sentence “ Gissing is sometimes 
claimed as an advanced realist 
of the school of Zola " — and 
poor old Willie Maugham in 
spite of all those wonderful 
short stories does not make it 
at all. 

Still, there were bound to be 
some noses put out of joint 
when we reached the 20tb cen- 
tury. Where the whole opera- 
tion continually breaks down is 
in its primary purpose of illus- 
tration. All too often the pic- 
tures fail to marry with the 
text. Frequently they refer to a 
topic that is coming later or to 
one that never comes at all. For 
instance, during Vickers' able 
discussion of the 18 th century 
poets. Thomson, Collins and 
Gray, we are shown a picture 
of man-made landscape and we 
are told: “GARDENING. One 
of a series of views which Bal- 
thazar N6bot painted for the 
Led family of their seat at 
Hartwell. Bucks, about 1738. 
The gardening style is old- 
fashioned, with vistas radiating 
in French patte d'oie style and 
vegetation formally clipped to 



Michael Donne looks at 
a brave airline 

Arab up in 
the sky 




'Z .■r.fj a. 










Cmm thu fm — Z« f— > y , 

Vri pte ».y far -rfjf ul 

. mtam r dab are tnH Sip- i rirfc-w CM 

A portable bookstall around 1700: one of the plates 
in the new Oxford history 


young and immature Middle 

G - - SHEUUi East Airlines. The association 

by Sheikh Najib Aiamu ddin . lasted for 26 years. 

Quartet Books £14.95 290 pages Sheikh Najto eventually 
" became chairman and president, 

MIDDLE EAST AIRLINES is and in his period with the air- 
one of the most remarkable of Use built it through many 
all the airlines that have vicissitudes to become one of 
emerged in the past 40 years or the most efficient and highly 
so. Faced with d iffic ulties that respected airlines in the world, 
would have destroyed many His book Is a tale of incredible 
another airline, especially the fortitude, for towards the latter 
deliberate destruction of most part of his time with the airline 
of its fleet In the few hours of it was surrounded by almost 
an Israeli raid on Beirut airport perpetual civil war, which, in 
on the evening of December 28 his own words, has turned “ a 
1968, and the subsequent beautiful showcase of efficient 
problems posed by a particii- trade and attractive tourism 
larly vicious civil war, the into a monstrous human 
survival of the airline is a slaughterhouse.” 
tribute to the tenacity and skill The book is an insider’s 
of one man. Sheikh Najib story of some of the most extra- 

Alamnddm, nicknamed “ The ordinary business occurrences 


r 


Flying Sheikh.” 


of recent years in the Middle 


emulate masonry.” Now the 
correlation between the 18th- 
century landscape poets and 
gardeners is an interesting sub- 
ject but one that unhappily is 
nowhere discussed by Vickers, 
who does, however, mention 
gardens in the 17th century, 
apropos of Marvell. Nor do 
Balthazar N4bot and the Leg 
family make any other appear- 
ance in the book. 

It is in the 17th century with 
the use by poets and prose- 
writers of emblems (what we 
might call “ logos ") that text 
and illustrations do for a 
consecutive period move into 
“sync” with each other. We 
are shown a fascinating 
emblematic title-page to an 
early edition of Hobbes's 


Leviathan, a work which 
Grundy aptly mentions as 
relevant to the ’power-struggles 
dramatised In Restoration 
comedy. 

I can think of two kinds of 
reader who might like to be 
given this book as a birthday 
present. One is broker or port- 
folio manager who came into 
his present position in the City 
via a degree in English and 
who will be nostalgically 
reminded by its contents of his 
or her carefree, penurious 
youth; the other is a sixth- 
former who is proposing to risk 
his or her all on trying to get 
a place somewhere to do 
English. It may serve to 
immunise the latter against this 
desire. 


like many other successful East. The story of the dellber- 
airline chiefs. Sheikh Najib ate destruction of Intra Bank 
came into civil aviation from by leading Lebanese politicians 
the outside. His early career is bound to be read with fasci- 
was as a teacher at the nation by many in the City of 
American University of Beirut, London who were at the time 
and then as a civil servant in just as puzzled by what was 
the Government of what was going on as everyone else. It 
then known as the Emirate of is the first time that tale has 
Transjordan, under British been told from the inside, 
control. In the latter country he One may also read the book 


Kinnock: a new biography 

Making a go 
of Labour 


KINNOCK 
by Michael Leapman 


Militant Tendency in Liverpool, 
to Arthur ScargJll of the mine- 
workers' union and. most re- 


Unwin Hyman. £11.95. 217 pages cently. to those who want to 
■ ■ ■ defy the Par;y and establish 


iTansjoroan. unaer nrrasn neen tOia irom TUB xnsxae. rrwr rce SOMETHING extra- Hiadr section*; He 

control. In the latter country he One may also read the book JSSS& B SEX riSaJSl the Partv 

KESi E4H SSS s-SS 

Prime Minister of Transjordan. of the Lebanon, by one who Margaret Thatcher as Prime Executive Committee, some- 


KVfSB 

E&F1E5F abSS ti£ tSI 5 challenged the belief in the ration is far better managed 

intricacies — and unpleasant- Lebanon's past and current the Labour t* 1811 has been * or years ‘ 

nesses— of international poll- troubles lies in its own vulnera- 8 . _ . _ It seems to have proved l ra- 
ti cal intrigue. bility to outside international ft is possible trot nevnunave possible to produce a convinc- 

He was never a born polite political manipulation, religious retrieved enoug h gro ann to ^ xt of policies as well, 

dan, by his awn admission, and discord, feudal domination in- ma * e 1 !? r 3tr 8 * t? 8 That would be the next step 

quit in 1942 to return to ternally, corrupt government, 2®*“? WJ “* hunseir still at tne gf ter a general election defeat 
Lebanon, where he founded and social injustice, as demon- “.ead, oxxd that even part or me ^ Kinnock chooses to stay on. 
his own business. Near East strated by the huge gap electorate i which does not vote j used to think that he was a 

Resources, But his skills were between rich and poor. Labour will have some admira- on e-time runner, more like an 

too valuable for a quiet life. Sheikh Najib has no instant t"® for 1118 conduct aM American Presidential c&odi- 


te Lebanon, by one who 
studied the economic. 


and he once again found him- remedy for the situation, for it — . . ~ 

self involved in politics, this has now gone beyond im- Loolong pack at lus election g 0es on f or years. Now I am 
time Lebanese. It was a result mediate solution, and thus his 83 “ £*** not sure. There is no one in 

of this that, in 1952, when his book ends on a note of sadness. ““J botb be , the Party really seriously to 

friend Saeb Salaam, then chair- But as a testament to courage, underestimated the size or tne challenge him, and if it conies 
man of Middle East Airlines, determination, skill and ford- task. Labour had fared cams- to a battle with the remaining 
was asked to form a government tude, it is one of the beat trophicwoy in tne ^nem eiec- hard left, Kinnock would 
In Lebanon, he asked Sheikh biographies I have read for tion of mat year and its decline almost certainly win. He 
Najib to take over the still very many years. appeared to be teruun^^any could be around for a tong time 

of the problems lay inside— -not yet. 

outside— -the Labour movement. _ . __ . . , 

■■■■ There, was ni«o a third force in . deserves a better book 


achievement. 


date than a Party leader who 


Fiction 


Old lady’s end 


MOON TIGER 
by Penelope Lively. 

Andrd Deutsch. £9.95. 208 
pages 

THE WRENCH 
by Primo Levi. Translated 
from the Italian by William 
Weaver. Michael Joseph. 

£9.95. 171 pages 

THE OLDEST CONFESSION 
by Richard Condon. 

Michael Joseph. £10.95. 344 
pages 

SUFFER LITTLE CHILDREN 
by Domini Taylor. Haraish 
Hamilton. £9.95. 287 pages 

FIRE CHILD 

by Sally Emerson. Michael 
Joseph. £9.95. 1S5 pages 

MOON TIGER is a novel of 
voices. An old lady, a popular 
historian, is dying in a hospital. 
She tells her nurse she Is 
“ writing a history of the 
world.” The nurse humours 
her. 

But this is her final mono- 
logue: on history, on the love 
affair she had in Cairo during 
the war, with an officer who 
was killed, and by whom she 
became pregnant but mis- 
carried. Her voice is inter- 
spersed with that of her copl 
daughter, her brother, and with 


others. Finally with that of 
her lover as she reads the diary 
he left behind him. She die;?. 

This is an always readable 
series of reflections on the 
manner in which private life 
depends upon its “public" back- 
ground. I think that the novel 
would have held together better 
If the author had left each 
voice to tell Its story without 
any help from other narrative 
details, which obtrude here. As 
it is. Moon Tiger reads more 
discursively than imaginatively. 
The fiction looks put in to 
embellish the ideas, whereas 
the ideas ought to grow out of 
the fiction. But it Is, as always 
with anything from Penelope 
Lively, interesting and stimulat- 
ing. 

In The Wrench Primo Levi, 
who has very recently died, 
turned from the terrible sub- 
ject matter of fascism which 
he had so helped to illuminate. 
This book consists of tales told 
to the narrator by Faussone. a 
wandering rigger. Levi here 
divides himself into two; the 
intellectual writer at home, and 
the wandering storyteller and 
worker he sometimes felt he 
ought to have been. But the 
book is not merely a collection 
of tales. It hangs together, 
unified by the thread of 
humanity informing all of it. 
Published in 1978, it lacks the 


sombre power of Levi's books 
about fascism, but possesses all 
their energy, vitality and 
humane verve. 

The Oldest Confession is the 
first novel (1958) of Richard 
Condon, author of The 
Manchurian Candidate and 
Prizzi's Honour. Condon i6 a 
self-styled “professional enter- 
tainer ” who thinks that maybe 
future ages will recognise his 
entertainments as literature; 
meanwhile he is writing for the 
present But The Oldest Con- 
fession is interesting, since it 
demonstrates his honesty: he 
is not one who tried to be a 
“serious” novelist and then, 
failing, abandoned the genre 
for a more profitable one. This 
is a skilful entertainment about 
art-theft which artfully paro- 
dies entertainments about art- 
theft. It really is a good read, 
and is all the better for not 
pretending to do other than 
entertain. 

Suffer Little Children is a 
rather effective and chilling 
story of an unhappy school- 
mistress (“The Moaner") who 
has some understanding of her 
defects. Ramona Charnley be- 
lieves that at last, in her nasty 
school, she has found a pupil 
whom she can help. But her 
voyage into self-discovery pro- 
duces some strange results. 
Suffer Little Children explores 



outside— the Labour movement. 
There was also a third force in 


American eye 


When futurology 
meets nightmare 


EINSTEIN’S MONSTERS 
by Martin Amis. Jonathan Cape 
£5.95, 127 pages 

FIVE STORIES and an intro- 
duction by the author make up 
Einstein’s Monsters. Peter 
Breughel the Elder’s Tower of 
Babel on the jacket shows the 
sinister high-tech of its day: 
since nuclear high tech is 
unimaginable and certainly 
unpain table, this is a good 
image, forceful and fair. Dislik- 
ing most futurology and sci fi, I 
approached the book gingerly, 
to be instantly shocked into 
admiration by its consistency 
and boldness, the scale and 
scope of its language, its meta- 
phorical enormities. Like all 
Martin Amis's writing, it 
dazzles; but tbe dazzling has a 
new quality, lurid as lightning, 
with reality seen in flashes, 
horror and fear made palpable. 

Three of the stories are set 
in a future of mutants, radia- 
tion sickness, dying and dead 
nature; two in a more recog- 
nisable present of less exotic 

suffering — schizophrenia, mur- 
der, the violation of children 

aud the old. All are suffused 
with what Amis in his introduc- 
tion describes as the effect of 
nuclear weapons, their unthink, 
able power; the hell Of living 


with the knowledge of them, of 
suffering, In Imagination, the 
unimaginable. Thus we live 
through what may in fact never 
happen. Knowing it, feeling it, 
belonging in it, we .suffer most 
for those we love, and earlier 
soul-sicknesses, even If we 
failed to recognise them as 
such, were all a part of it. 

The huge slavering five- 
legged dog with every Imagin- 
able contagious disease, which 
needs h uman flesh to keep 
going; the immortal who has 
lived through aeons (or is he 
just a school-master with an 
overheated imagination?); the 
pampered “personalities” in a 
world of A, B and C people 
(B protecting A against the 
manic envy of C); the muscle- 
man In Netting Hill, a Pole 
who pan lift skips and trucks, 
not to mention people, as if 
they were deckchairs; the 12- 
year-old diarist who projects 
his neuroses on to the new 
baby: all carry the wounds of 
this nuclear knowledge, a pro- 
jected stigmata or tattoo. Daily 
life is steeped not in sunlight 
but in a glare of burning. 
“ There is only one defence 
against nuclear attack,” Amis 
writes, “ and that is a cyanide 
pilL” 

Isabel Quigly 



Penelope lively: public 
and private lives 

unpleasant territory with great 
conviction. It slowly but surely 
changes from novel to thriller, 
but will convey the authentic 
shudder. 

Fire Child also explores the 
theme of wicked girls, but is 
more ambitiously symbolic and 
portentous; it is less good, but 
Sally Emerson contributes some 
passages of lucid writing. She 
will be effective when she de- 
cides to dedicate herself to 
straight thrillers of the Ruth 
Rendell type, without any pre- 
tension s — or, if she will write 
at a more serious level, sacri- 
fice the temptation to sensa- 
tionalise, As It is Fixe Child 
Is disappointing because It falls 
uneasily between two stools. 
But there is enough there to 
suggest promise. 

Martin Seymour-Smith 




LOOK HOMEWARD: A LIFE 
OF THOMAS WOLFE 
by David Herbert Donald. 
Bloomsbury. £16B5, 579 pages 


the shape of the Alliance that shmjt hLs leadership than that 
was coming dose, to equalling P*widea by Michael Leapman 
Labour’s percentage share of y expected 

> 4TR Yft dQi the vote. Yet for a time under * or .» l ^ e au ^ or . can be a 

.gW I I rt C the “ dream ticket" of Kinnock Jggr and perceptive journalist. 

as leader and Roy Hattersley as Th f® ** pedestrian. In one im- 
deputy the Party seemed to P°rtant respect I suspect that 
recover and it was not only * p l?’ n „ w l Qn F' 

where he deems It necessary. Kinnock who believed that it „ ,i~ uocic did not 

Donald himself points out that was bound to win. A large part I® a non-nudear 

Wolfe metamorphosed his whin- of the media held the same defence policy primarily out :of 
ing, self -pitying alcoholic view. r~ Qi ,„ 0W P ,K« 0m K?Hw ns ’ ■ but 

father, W. O. Wolfe, into the It was only when the Con- thought that it was 

heroic Viking-tike figure of servative Party began its con- 5* 0PJ y , w y. °f umnn S .the 
W. O. Gant. certed fight-bads last summer £®fty that. he recognised 


THERE ABE afidonados in W. O. Gant. certed fight-bads last summer r~ l . ““ recognised 

America who collect Thomas If the literary critic rather and the general election came that it 

Wolfe's old socks. I am sure than the historian considers nearer that Labour’s standing t0 . p€>rsuade 

David Herbert Donald, Pro- the book by which jWolfe made in the opinion polls began to t°t«s to support 

fessor of American History at his name, Look l Homeward, ML A widespread perception ^ e fe nc ? 

Harvard, biographer of Lin- Angel, he finds that the style must have been that it does not u 

coin and guru of Gore Vidal is posturing and amateurish, look like a party of govern- calculation, for 

is not among them. Neverthe- futi of echoes of other men’s g-innodc was under no obliga- 

less he has snapped up some work. The effect is like watch- Part of the reason is that JJg 1 ° “F non-nuclear 
equally unconsidered biographi- ing a home-movie to the accom- so many of KLnnock's battles f* ‘® r “ e “»6\ 

cal trifles in his new account paniment of a narration by have had to be within his own 11 because believed in it. 

of Wolfe's life. Not, mark you, William Jennings Bryan from ranks. Se is most remembered n„*L A r , 

that there is anything that new a script written by a student of 30 far for standing up to the i>iaiCOini KUtnertOrd 

in this much publicised a Great Books course. Sonorous 

biography. We have been told orotundities from Ecclesiastes ■ — — ■ 

a considerable amount about and psalm - like hypnotics 

the colossus of Asheville since re m iniscent of tbe Song of 

he died, aged 37, of a tubercular Songs dash with passages of 

infection of the brain on pseudo-Elizabethan rhodomon- 


September 15, 1938. 


tade and rumbles from The 


There are, inter «»«, Thomas Anatomy of Melancholy. As 
Wolfe’s Letters to his Mother, dressing, there is the sickly 
The Letter of Thomas Wolfe, sweetness of Victorian lyricism 
The Notebooks of Thomas spiced with clumsy attempts at 


Army of good 


The Notebooks of Thomas spice a wim ciumsy auempis ai rhetorical element «« 

Wolfe, the critical stu dies erf enn a tjbtc the word a deliberate* 1 *^ 


the 1940s— particularly those of the unashamed autobiography SOCIALISTS 
Herbert Muller and Pamela of the narrative is objectionable b y Edward Norman. 
Hansford Johnson; the flood of not merely because it Is so Cambridge U. P. 
commentary and criticism in obvious but more particularly £17-50, 201 pages 
the 1950s (Richard Walser, because of its constant sugges- 


the word — a deliberate asso- 
ciation with extremism in order 
to demonstrate solidarity with 
those whom respectable 
opinion despised.” 

While the Christian Socialists 


Martin Amis: could it happen? 


CRIME 


DEATH IN PURPLE PROSE 
by Robert Barnard 
Collins, £8.95. 183 pages 


IN ROBERT Barnard's oeuvre, 
which, happily and steadily 
increases, there are a number 
of novels set in Norway, a 
country where the author lived 
for some time, and a place he 
has observed with clear, wry 
affection. This new story un- 
folds in the Bergen area, where 
a Romantic Novelists Confer- 
ence has been organised (if that 
is the word). Here Barnard can 
indulge his taste for literary 
parody (another recurrent 
device in his books). This is the 
sort of exhilarating and satisfac- 
tory performance readers have 
come to expect from the virtu- 
oso Barnard. 


POISON 

by Ed McBain. Hamish 
Hamilton, £9.95. 264 pages 

If Ed McBain was not the 
inventor of the police pro- 
cedural novel, he remains its 
most skilled and most imitated 
practitioner. Nothing much 
changes in the 87th Precinct, 
but within its confines, McBain 
manages to invent a convincing 
world of good and evil, routine 
and surprise. 

For most of this new 87th 
chronicle, tbe author is at his 
best: dipped, direct, original. 
Then, at a certain point, his 
female protagonist gets out of 
band; and her entire past has 
to be narrated. It Is not uninter- 
esting, but its length throws tbe 
pace of the book out of kilter. 

The story ends with an unsatis- 
factory question-mark. We must 
hope that the answer is on its 
way, in the next McBain, all 
the more eagerly awaited. 

William Weaver 


Mo^pM«^ESthltowdi as well to recoiled that Shakes- toat adhSScl 1 SS?%JSS JS 

and Andrew Turnbull, and the peare merely wrote Hamlet; he to the Christian religion must diS f J r thS^i^ M^ nF 

accounts of Brnce MCElderry, was not Hamlet Wolfes saving necessarily entail an interest in them either 

Hugh Holman and Richard grace is his comic gift and his the condition of the poor. nromriJrt HZ 

Kennedy; then finally (one extraordinary ability as a Charles Kingsley, for exai^e. iSSff SiJSSmTSLSf 

thought) the recent revelations mimic. As he got older and cited the Bible as the source of tionv 

and summings-up of such as his style matured he learned his belief “that God inspires the into diSrrav 

Paschal Reeves and Elizabeth to expunge some of the woolly poor with the desire of liberty; as nnMiThrnTtWn r^ 

Evans. What was the motive philosophy and sentimental that he helps them to their raised thP^ 
of this distinguished historian wadding. The result is such rights.” Stewart Headlam stated wSot to 
in straying from the sure field unforgettable descriptions as the Christian Socialist position intervention^ 1 ” 1581 '’ 11 for Btate 
of history into the killing field the one of Lloyd McHarg yet more forcefully: “It seems T 

of fiction? (Sinclair Lewis) in You Can’t to me to be the duty of every 1X1 “IS face of this disbar- 

Professor Donald explains it Go Home A * ato - minister of Christ to do all he ix cte** 

as foHows, Bom, like Wolfe, In B P* ^ book * course, was possibly can to stir up a divine JK, o£ ^ 

toe American South — albeit published posthumously — as discontent in the hearts and Socialism as 

20 years later he “shivered were The Web and the Rock minds of the people with the LJ 5 ?? e ^ ea J Movement.” he 

aroreStlvehr to toe rhetoric and racil tasteless publications evils which surround them.” too^smstead on the lives and 
of P ^ok HomewSti, Angel 88 Poetical Passages from the Paradoxically, the views of 

when he was a teenaaerin Writing of Thomas Wolfe, most of the group had dear j* e . describes as “the 

die 1930s. Later while he was Wolfe had to rely a great deal affinities with contemparory leaders of Christian 

mSdnghis ^fesSl rapSS on his editors, first Maxwell Per- Tory paternalism. A desire to Sodalmt opinion ” - 

tion as a Civil War historian, 5P 3 * then Edward AswelL If engineer a return to pre-indus- Ruskm. who is selected 

be forgot about Wolfe. In the Professor Donald ever seems to trial -social values, by persuad- “ one of these eight “leaders." 

1970s, however, his memory lapse i into partisamhap it is over tog the rating classes to assume tikin fact, portrayed as rather 

wrawS oi. driSg by &3£J2V a SP .« SSt?“LJ. rom others: 


chance through Ash^ille. made by John HalberstadL His Pfirici^y evident in the writ- unlike most members of the 
North Carolina and deciding to Southern blood is aroused and togs of Thomas Hughes. The Sroup, he “took almost no part 
visit Wolfe's mother’s boarding- he , Jea P® to defence of his duty of toe privileged to pre- to any of the various move- 
house. He planned to tadode auth ®^ s , £2? J own ,J? u ‘2J on y colours social reform,” 

Wolfe in a study of Southern Pptn t » infinitely r< 2“ ®™ wn ’s he did venture into 


society and culture after debatable and, given toe calibre ®dh°ol Days, through the figure J^e field of independent- action 
^contraction, became more P 1 **** probably not worth for whom “it by financing “an unsuccessful 

interested and the blaeraohv ** “yway. that as a may, didnt matter a straw whether tea-ahop in Paddington, 
SSJSl ' AU this ■“ d e S£ n , kere^-Wolfeana "ito the intended to provide pura ten 

ingenuous and attractive, but Sriore m 5TO close-packed pages >*»■« x £ eo a « moderate i prices to toe poor 
tolre is a fatal flaw in DMald’s fascinating for a reason that P^»}ed they were brave and of the area.” 


S-wbTXtwX: !SL e8 “ r W* 


&3&if2£S 

&KBi£2 


wane's lire ana tne nature of ««««. nawara jvor- contrasts 

his extraordinary style provide uxan ^lggests that it was only dements 


between 

within 


divergent 


• i 


of the 20th century.” uw wrarmnwy styie proviae ~~~ miy elements within Christian 

tori™ could pri te«Uh centair that ftw came aiS " 

a- ^ « tat *• -5S3S- jafiraf s 

— -S aajfft.'M Geoffrey Moore ' a .“- a 


'f ^(i 


Mmm as primarily “moral and educa- 
trtiMirty irtOOrC tiro," although “there was a 


material. 







New Homes & Developments 


AOntamor 


BERKLEY 
HOUSE PLC 


MeiMKutUiiCDUinr 

cnv 


Ms 


MANHATTAN’S 

ROOF TOP LIVING 


BIC KE NHALL 

BICKENHALL STREET, LONDON W1 


10 Luxuriously Appointed New Penthouse Apartments 
Panaramic Views 

1,23 Bed roomed with Studios 

Low Service Charges 


• New 125-Year Leases and Low Ground Rent 
Prices from £95,000 for Studio to £425,000 for 
stunning 3 Bed roomed Penthouse. 


CHESTERTONS 

^—PRUDENTIAL V “' 


JAMES S/UW&Co 


Sales Centre 

188 Bickenhall Bickenhall Street London W1 
Tel: 01-935 3632/8510 

OPEN7DAY5 A WEEK 

iiLi. ill! - 






mmm 


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2^ BERKLEY 

HOUSE PLC 


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JilUtfU 

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LLOvDS 



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A cKiwvfl ci Uabivki. 1 Group pic 

i THE WESTBOURNE 


z 

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of junction of Westboume Grove and Chepstow Road) 
WEEKDAYS 10 A.M. - 7fW..- , 
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§ 


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ESTATE AGENTS 


LASSMANS 

ESTABLISHED 1378 

01-4092020 

liOLDBtXVD.uTHSEi: 

LavixmnxaDa 


.w,v. 

ABOVE THE MADDING “w from the 
CROWD 




GUN PLACE 


Spacious penthouses with every imaginable 

fitting, in exclusive Wapping overlooking the river. £ 425,000 


For more information 

contact Linda Gaffarena 

on 01 -2651282 

between 1 1 am and 6pm 

every day, closed Monday until 2pm. 

Wapping Sales Centre. 

Bridewell Place. 

Wapping High Street. London. El 


or Ivor Skinner on 01 -555 3242 

Barratt East Londo n Ltd 

Warton House ,* * „ f jv 

1 50 High Street '\"m? te© 

Stratford London 

E15 2NE L — : — — 

A house exchange 
= service is available. 




A Stratford London !!.L— 

ndon.El )j A house exchan\ 

^ -*■ " service is avaSab 

BARRATT SSBKSSK 


Please send me 
details of 


1 . ” ' * 


A trudy unique development of magnificent architect designed 4 and 5 
bedraomed detached residences In prime position at Chariton Kings on south 
eastern outskirts of Cheltenham. 

An exciting range of 6 house types offering very spacious family 
accommodation and luxuriously equipped throughout. Ail dwellings have two 
full bathrooms, GCH, double glazing, recreation room or study and large 
double garage. 

PRICES £ 147,000 to £ 169,500 

Fatty furnished ihowfasuse and Sates Office open 7 days a week at 
Chancel Park, Chancel Way, Cirencester Road, 

Chariton Kings, Cbettenham. ■ 

Contact Sue Duudagtan (0242) 574296 or 
Mahrtm (06845) 60501 (24 hour answering) 



TELFORDS YARD -Wapping, El 

Only 19 Minutes walk from ifcc City .. 

Fwc spadous2 &3 bedroom penthouse maisonettes on 5th & 
fith floors of this mamlficente o nvert^VActoriaii warehouse. 

LEASEHOLD: Am?OX 124 YEARS £220-£460,000 

WewbysppotatMMfctl-4889586 

SOTILLS 34 TheH^h«vay, London El 


RESIDENTIAL LANDSCAPE 3* 
IN LONDON - . 

. ’ : - > zv." 


your brand new, easy-to-run homes at 


■ . . . \ ANA; :■■■' ' 

' A/: YA .'-tv . . £ 

V : 

- -A” '>■ : 7'-’ 
i'./i 


:• V -.^ErT : - C- LTr 


uniformed «aff 


mmx 

■ four to five 


MdcoometfliouM* 

- a»»»flabl«« 

^osehaiigh Copartnership • prims from £750^)00 
Z- Devplofhicms U 6 : . * to£U50.000and the 

"Zftiaaque. Uowy bouses, show boose is opes on 

w^posdbtearioatt^ weekdays from aooatfll 7.00 ptn and 

' A*^ namraHy. tilesema^ttrpicCes are weekends from 1L30- 3 JO pm. 

— — — — Apply sole agents: 


□ Swiss Cottage NW3 

(Quadrangles. Adelaide 
Rd) 4 bed town houses 
from £210,000. 

Phone 483 2410. 

□ Woodford Green 

(Broadmead, 
BroadmeadRd)2&3 
bed houses from 
£60.000. 

Phone 505 6775 


Hampton & Sons 

31 HEATH STMETil tAM PSTtAULON tx IN NW3 l¥B 

TEL 01-794 8222 TELEX. 25341 


Pfeasere* i_j RothertiitheSE16 ; Swiss Cotfc 

□ Hackney E9 fSoverei^n (Atlas Reach. Brunei ( Quadrangle 

Mews. Victoria Park Road) 1 & 2 bed flats, 1 , Rd) 4 bed ten 

Road) 2 & 3 bed town 3 & 4 bed houses from from £210,0( 

houses from £80,000- £50,000. Phone 483 2 

Phone 549 2913. Phone 231 7107. □ Woodford C 

□ Kingston (The Orangery. □ North Beckton E6 (Broadmeao 

Liverpool Road) 1 & 2 bed Obligate Rd)4&5 bed Broadmead 

fiats, 4 bed houses from town houses from bed houses 

£53,000. £96,000. £60.000. 

Phon e 549 2912. Phone 551 6406. Phone 505 6 

□ Pinner (Haydon Manor. 

TolcameDri\fe)4 bed 
houses from £180,000. 

Phone 868 1776 

TO: Ideal Homes London Ltd, 
Goldsworth House, St John’s Rd, Woking, Surrey 


Address 


A Trafalgar House Company 

■■■■■■■» r Hornet 



















rr -, 


RACES' 


By order of the Crown Estate ComnussHmws 

Kensington Palace Barracks 
Kensington Palace Gardens 
• London W8* 

The best residential site in London. 
To be sold on a new 99year lease 

Closing date for offers 
Friday 29th May 1987 


CHESTERTONS 

I 1 K I l> I ' \ I I V I ^ 



THE CREAM ALWAYS RISES TO THE TOP 


. Cenfe-Thcliiul IS rtunrunt: jf-wnnvnt>ai ihcinr 
c ie (hi* nuietwto'h: oner MkL. sm:h|\iiti comic views 
ati-j the Thanic -nt w relive J. CasotJcs S set in 
!' i liii LmJ^ jfnli^ikleihjnJ jncniiK' 
■\ ■. . incluLie: , <%iminincp'K > l.iJuiti& 

rSHrik* kvui. MnnKcmin. bu»uie~ 

. hKilwic. 'v-vunrJcirpaiklrvi;.>nJ 
24 him ixeunni^'Minr. Each 
liaiiniiu»jficnmcralualratuns> 
l>.- tW" . irclwJirv nurNc-Imn! 

r »h n7 x.jhiihr.*K» 1 2r.i 
'■;*> ■'"’T ; - -. y • j- >]hMvrn«ini« jnjhjlonti^. 

t I & 2 bedroom apartments 

• _ -i tnd-ssi. * fit»m£iwy»o 


J I: -• rT'Jm'; 24 

^rr & k 




THIRD-PHASE 
■ SOLD 


"V VIEWING SAT & SUN 

"" . MAYS 8. 10 

2 pm lo A pm 

- . — , . — ^-r r M -% u . . Camtei VIMfcny Road, 

-rsi . stL"— - . Dodianfa-LcnJonEia 


: nS®5i 


•.J' 


• • -■ op- V? 

T. — -*■ . i «■■ 

SECOND PHASE Z : • '! - Z "p — . 

... SOLD i “ — • _■ - _ ~ . 

— ' - 1' — -“■*■ 

: - t ItT® J. 'r -r ' ■ 

' FIRST PHASE =** ■ J ^ • - -} ■? . „ : -IS "P 'GS 

sold: j-; . ; -i-r. ^ ■ & <- 

ANOTHER DSTWCT1VE DEVELOPMENT ROM KH7TISH HOMES. 

CASCADES 


C /1 I^n Selby 

& L Partners 

01-986 9431: 

Brochure line 


^CTTY CANABY WHAHF^ 
CAWmF*i 



SAVE UP TO £10500 
Exchange contracts wthr 
14 days. Save £7500. Bus 
Stamp duly lo a maxmin 
ol £2300 aid legal fees. 



CHARLES CHURCH 
WEST BYFLEET, SURREY 



REED PLACE. OLD AVENUE— an exclusive low density develop- 
ment of only 10 character homes In a highly favoured residental area 
yet only Vx mile from the town centre and railway station (Waterloo 28 
mins). 

There are 3 different styles namely The Wessex. Douglas and Argyll 
and each features: — 


Principal suite of bedroom 
and luxury bathroom 
4 Further bedrooms and 
family bathroom 
Poggenpohl fitted kitchen/ 
breakfast room with 
appliances included 
Gas tired radiatored cen- 
tral heating 


3 Fine Reception Rooms 

Utility Room and Cloak- 
room 


Double Garage 
Good Mature Plots 
Luxury specification 

PRICES FROM £272,500 FREEHOLD 


SITE SALES OFFICE OPEN MONDAY TO SATURDAY 10 AM-5 PM 
SUNDAY 12 NOON-5 PM TELEPHONE BYFLEET (083231 42834 

^1 BLACK HORSE AGENCIES 
I Gascoigne -Pees 


WEST BYFLEET is station approach ■ ice323) 49555 



Lancaster Gate London W2 

A new landmark for luxury living facing Hyde Park 

An exciting new development of 23 luxuiy apartments 
within a magnificent purpose built block directly opposite 
ttiePark. 

► Unique and impressive • Ground floor car parking, 

entrance hail. • Private landscaped garden. 

► High security with advanced • Uniformed porterage, 

surveillance systems. # 2 passenger lifts. 

Each comprises 3 double bedrooms, 2 bathrooms, large 
double reception room and Poggenpohl fitted kitchen. 

125 year leases. 

2 Show Flats Now Available 
For colour brochure contact sole selling agents: 


9 




Jjp^GifeS&EDENS 
Z'ZjtENSlNCHW 
LONDON S.W7 




Phases I <&. 1 
now over 
50% sold 


12 superlative new apartments remain 
available, including: 

First Floor Mecsanine of 2 beds, 2 bath, etc. with terrace 
@£190.000 

Third Floor of 3 beds, 2 bath, etc. with terrace @ £295,000 

Splendid Rnt Floor of 3 dbL.beds, 3 bath, cloaks magnificent 
original reception room with balcony & terrace © £455,000 

Exciting Fifth Floor Penthouse of 3 dbl. beds, 2 bath & cloaks, 

2 large reception &. 25ft terrace <g> £475,000 

LEASES 1Z5 YEARS 

SALES OFFICE OPEN DAILY U AM TO 6PM I01-Z25 0897) 


ivnai 

m 


Nelson 

Hearn 

01-937 3811 


01-5817654 



WINDSOR mv 




.j . ■■ a 


~ v V’ 

- V. ■ fT ■ 


w 


LONDON \\:\A 


The ultimate in style and luxury 



I ApUUOTKI Ih UMJN 


S Hcdraamcd AfBltll 

1 Brdroootfd Praibainn bn I5ZS. 
Court, ini D Horan from (3SMH 
Show Fb, Opm Ham 7 pro WccUjto 


JA Albert Court 
*• KniRhlobridse 

®° London SW7 

Tel: 01 -58 1 377] 
lav ■ Spat Weekend, 


Knight Frank 
ZZ & Rut lev 


A1ISTEROAM ROAD; 

LONDON YARD. E14 
Spacc»a ere bocroom aoaitmsm on 
tst too: wen balcony y ev ti ng exceSent 
vwws over River Off Street paitang. 
Rscwtion :9 3T * 1T4-. Bedroom 

lire’s!- 91 

CS5.000 Leasehold 

GUN PLACE, WAPPWG 
HUSH STREET, El 

L*g« anc spaaous one bedroom 
ap artme n t in hean of fashionable 
Wappirg Finished to very high 
specification and benefits bom oalcony 
and underground partung space. 
Reception 15' x t3T. Bedroom 
13 r* TOT 

rt2S, 000 Leasehold Sole Agents 

CALEDONIAN WHARF. 

SAUNDERS NESS ROAD. El 4 
A [akesde mreetour bedroom townhouse 
with integral garage and garden, arranged 
on ttvee Eoors on this prestigious 
Dockla n ds riverside development 
£135.000 Freehold 


LAUDERO ALE TOWER, 

BARBICAN. 1C2 
Large tfrawtour bedroom apartment on 
thini floor ol prartgloui Babtaan tower, 
assuring a high degree o( privacy and 
situated minutes from Barbican tube and 
Arts Centre Reception 16' x i3'2". 
Breakfast Room, Dining Room 

EiBSJOOLaaxnhotd 

TELFORDS YARD, THE WOHWAY. 
WAPPING. El 
Enormous two bedroom eparimeni on 
isi Boor ol popmarwarahouse conversion, 
situated witftn mnutea of World Trade 
centre ana Tower HE tuba Recaption 
33T x Z7'3*. Bedrooms t3'G* x tS'fi' A 
15-8-*13 - 6T. 

DBBJOO Lamahoid 

UNTTV WHARF, MILL STREET, SE1 
A delightful two bedroom apartment in 
smefl warehouse conversxxi overiooUng 
St Savkan Dock bom balcony BeaufMy 
(toed kitchen and ensute bathrooms. 
Reception 3v x 23'3*. Bedrooms 
ig , 9’X1S673Fx9 , 6’ 

£2703300 LetuahoM 
Joint Sole Aoentt-CtmteitaB 94538 4321 


London Docklands 01-538 0744 

Z Lim eharbo ur. Isle of Dogs, London El 1 9QT. Telex: 265384 


Overseas Property 


Hampton&Sons 



SOUTHERN SPAIN 

Individual villas in a lovely hillside location with 
outstanding views of the coast and Gibraltar. 
Extensive m ari n a, beach and sporting facilities within 
fifteen minutes. International airport two hours drive. 
Prices from £75,000. 

For further information contact: 

International Department, 6 Arlington Street London 
SWIA 1RB. 01-493 8222. 


For detail and full 
colour brochures, 
contact a 


Bovis 

Bo vis International Ltd 
127 Sloane Street 
London SW1X. 9BA 
Tel: 01-730 0811 
Telex: 919435 

A member of the PiO Gram 


Baying Abroad? 

Buy from a name you trust at Borne 
Bovis International are 
developing luxury villas, pueblos 
and apartments on prime sites 
at 

QuJuU da Laga 
Algarve. Portugal 
Apartments and Villas from 
£86,000 lo EMO.OOO 
9Cj*s 

Costa del SoL Spain 
Apartments from £29.500 to 
07,500 


FRENCH ALPS -LA PLAGNE 

fDLVPWP/0£/£S GAMES 1992i 
BEAUTIFUL CHALET rtjhr by the nvur trails 360 
»M lenb «* Mrm doutfa km 

room -«i bra plra, « wrami, J Ml butrocno, 

1 hiHy medrm knehen, doable terraces isoaft. 
WnU. fully fwnisM, Lmd jppnu hdo M It 
Coma J. BOTE lor fetter details at : 
PROWAY, 27 roe tie «UrtS*»-75ffl3S PAJtlS- 
FRANCE. Wok I3SJJ 4359A4J4. 



ltnagme an ndutive resort just 70 mmuues rrom Geneva. Sunshine, skwng. skaiing. rximmiag. golf, tennis, bone- 
• riding, superb restaurants and shops. Iiuernauooal schools. AJI set in wooded slopes tvith suiniuog mounUin views. 
All ibis— and more— you wfll find at VILLA RS — an bhlone villagf with a sophisikated ya frtendJy atmosphere. 

Nest Investment opportunity in Swiss real estate. 

ExceUeoi income potential.' 

Ao unique concept in «kd fully serviced apartments 
with all the fatibiies of a luxury hotel 
—indoor pool, squash, tars, resuurems etc. I lo A 
room apartments rrom 5F 165.000. Up to 80% Seres 
finance available at favourable terms. 

Men the Swiss developers at 
The May Fair Hotel. Smuton Sl. London WI. 

10 am - 8 pm 20th & 21st May 
For detail; and jpp&naneni coraaa: 

HBary Scott Ltd. lamobfficre dr Vfflan SA.. 

The Old Bakehouse. Manor C adage, “3 IS84 VIBare. 

Chmeb Lane. Barafaam. W. Snws P022 0BP- ®LJS*a Switzerland. 

Tet 102431 S54319 rttShii Telephone 010 4! 257353531 

Trice ffiTM Tetac 456213 GESE CH 


Snuatcd at the top of ibe exclusive pnvaie park— La 
Residence — this chalet comprises 22 apantDOlts with 
superb views over VilUrs to the French Alps. 
Completion due Summer 1987. 

Studio apartments from SF 180.000. 

2 room apanmems from SF 330.000. 

3 room apanmems from SF 465.000. 




SWITZERLAND 

3*M n f trug mt rj wi fciiii rg 

Lake Geneva 


& Mountain resorts 

m no ON* m APUIMiir M Dull I - m 
mm. nwwnm. mm nuns, us 
BIASURITS. CHUM rei.BIUIMq.JUI. 
rmH u«n ■ Ikl Mh tatol. «c baa 
Sn nontn UnvPiM-<l *tmi 

REVAC SA. 

UiKtt MoMfinOM - Dt-1202 HKW 
lei tr jj/31 iS4fl btexEtUO 


SEL ECT SQWHgH H CAURHtMA 

mo wmiB AHWMAME 
For Sola or Joint Venture Cnolca mmemlai. 
offlea or commercial pnMca either 
complMad or In be teun.' oRkOib security m 
aporohjtwn plus mcepnanai return on 
■nvesanant R.E. Dewtopor mdoroven track 
recoro of auceesafui projecra hum concept to 
final sale invites inquiries. 

Contact J. Hotanaa for tunhar muds-. 

4400 MacArthur BM. FJfBI Ftoor- 
Newport Ben. CA B2S60. USA 
Fax: 714 9SB a 990. 


ANDORRA 

BUY DIRECT FROM BUILDERS 

£25,000— £120,000 . 

Full sales, management and 

rental service 

■ CJ5A Aadorraa Pra par t ie s Ltd. 
30. Halting HQ! Gate 
London Wll 3HX 
Trt- m.7?1 fJULX 


40 Con ru ught Sfreer • London W2 2.4B 
Telephone 01-262 5060 
Telex 8955620 
fox 01-724 4432 I 


Belgravia Hr IKS wftb ftardau 

An Immacufaite three bedroomed house In INI pretty tMckurater to lb* south rf ita 
Gtasvmor Estate. El LOBBY: SITTING RMtSTUDY: 2 RECEP& 3 BEOS: 2 
BATHS: CLKRM: K1T/BKFT RM. UTILITY fW: BAL: »’ GARDEN GAS CM: 
Leasehold: «*:»«« E5W.0OO 

Khtgslon Home Cast, SWT 

A two bedroom, two bauroom lower ground floor Itot (ft need of ioro« rateenration m 
IMS popular block. E/HALL: RECP: KIT: LIFTS: V HOUR PORTERAGE: H/W & 
CM: USE OF GARDENS: UNDERGROUND PARKING AVAILABLE. 

Leasehold: 4B yoan tUSfiOO 


KidgMshtidgo office 


■days UbokXpML TMs 01-730 Wl 


Country Property 


Humberts Residential 


Hertfordshire 


Bttoirs Start ord 5 mBes. Hertford and Wire 10 miles, BR Hertford' Uoorgete 45 miitt. 
A thmrnl ag old Vkareoa, with o u t st a ndin g views over the wnuoadlai ca an t t y ri do. 
Cmranc* lotrt^, reception hall, chuAreom, stttlng room, dining ram, k'ltcbenitevakfau ram, 
LnUer, crtUr. maner bedroom, m son Mthroom, 9 further bedroom ana bathroom. 
MJalatag ielf-«aBlalnod mrw stttlng room, dtaiag room. Uttheo/hreMbet room, 2 
bedrooms and bathroom. 

Dotafe garage Large hare wttfi loose box. 

Oonniiig gardens aadgnwadi of aboot 1 acre. WeWeneod paOdodo, approximately 3»j acres, 
mere b> the fiea at S398JM0 PMoImM. Mat Sale Agents: Bafrit— Evas ImmEI 
StartfHti, Tel: HHTO 5048AK. LandM Otfke, Tab BUM *700. Hatfield Ofn«. Tat (070 
72)7530. 


Surrey 


Hoimbury St Mary, Dorbog 5 miles, Golldfoid 8 mites. 

A mgaMIcant (Duatiy musfw wNh UtytM addWaa and gardens by Gertiude JehyR bt a 
superb position an Leigh KU currently coofac tn te centre/ train bp estabtinuKoL 
Part arra nged as sbeftered aeummodattaii. H central healing. Staff RaL fiaragteg, 
wtt l Mws and 2 had taunts caorts. fianttas aad groun ds of U acres. 

W acres of Madtaod (let), stable campfcu and ladaar riAq schoul pet), ptaylag Adds 

wUh patfRon (ML 

Freehold foe Sail u n whofe. 

DataSs: Lens Office, Tel: (0273) 470020 and London Office. Tab 01-629 6700. 


DEVON, OTTERY ST MARY 

(Honiton 5m, Sidmouth 6m. Exeter 12m) 


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Financial Times Saturday May 9 1987 


TRAVEL- MOTORING 


WEEKEND FT XVII 




Barcelona, chic and raffish, is to host the 1992 summer Olympics. David White reports 

High and low in Catalonia 


BARCELONA . lias probably 
never looked as good as it does 
now. By the time the 1992 
Olympics come around it should 
look even better, but then it 
may be quite . a different place. 

Not just '-the old Gothic core, 
but also the bondings of the 
rectilinear, pioneering city be- 
hind it have been getting re- 
stored, first the facades, now 
the interior courtyards. Lamp- 
posts are decked with "Bar- 
celona, Fosat Guapa ” (Make 
Yourself Beautiful) posters. 
Barcelona' is mairing a new 
image for itself. It always did 
have its sophisticated bour- 
geois side, of coarse, but its 
renown was more as the seedy, 
raunchy Mediterranean port, 
cousin of Marseilles ami Naples, 
onetime cradle of anarchism. 

Along with the cosmetic im- 
provementB, a new seafront 
avenue is starting to reveal the 
face Barcelona will be showing 
in five years' time. This is a 
city which has levered itself up 


on big events. Its Universal Ex- 
hibitions of 1888 and 1929 
account for most of its town 
planning: its metro, its parks, 
and its avenues with the stark 
geometrical names of Diagonal, 
Meridians and ParaULeL It is 
now not only getting more parks 
and squares, but a beachfront 
like Nice- Considering how the 
old Barcelona ignores its mari- 
time aspect, the project seems 
like an optical illusion. 

There is already something of 
a Barcelona vogue.- not created 
by the Olympic decision, but 
confirmed by it. Its redis- 
covered avant-garde reputation 
is curious, since it comes pre- 
cisely when Ttorroiow^ has 
ceased to hold absolute sway 
over Madrid in terms of culture. 
Some complain that In the wake 
of regional devolution it has 
even become rather provincial. 
But perhaps there is no con- 
tradiction: Barcelona -has al- 

ways thrived on feeling a bit 
decadent. 


WEEKEND 

FT 

BREAKS 


The “new" Barcelona can 
be savoured In the shopping 
arcades off the elegant Passeig 
de Gracia flanked by b anks and 
fashion houses, or better sitting 
down, at one of the proliferat- 
ing breed of smart bars where 
the flair for design is on con- 
spicuous display. Currently In 
favour are The Snooker on 
Roger de Lluria (2930's-insplred 
decor and. yes,* snooker tables, 
under a giant angled mirror), 
the Universal, the Partycular 
and the famous KGB. Late-night 


A glimpse below stairs 


THERE IS a painting at Ston 
Easton Park, Somerset, which 
repays no end of contempla- 
tion — especially after dinner, 
on a sharp cold night, when 
moonlight frosts the windows. 

It is a painting by Thomas 
Beach of four of the house ser- 
vants. In the late 18th cen- 
tury Beach lived at Bath, and 
was commissioned to paint 
several portraits of the Hippis- 
Iey family, which owned Ston 
Easton. 

The family portraits have 
long since been dispersed, but 
the painting of the servants 
hangs there now. It shows an 
underkeeper, tight-lipped and 
shrewd; a boyish-looking maid, 
dangling her left hand on a non- 
existent hip;, a bonneted house- 
keeper, respectable and devout, 
and a saturnine bailiff. 

What gives the painting an 
allure that was not intended is 
the rumour that house- 
keeper later murdered the maid 
when die found her kissing the 
bailiff. 

She miles from Wells and 11 
from Bath, on the A37 from 
Bristol to Shepton Mallet, Ston 
Easton Park is a listed Grade I 
Palladian mansion that was 
started in 1739 for the land- 
owning Hippisleys. 

In recent times, under the 
ownership of Peter and Chris- 
tine Smedley, the house has 



TOUCH OF 
CLASS 


This weds Ston Easton Park, 
Somerset 


undergone extensive and bril- 
liant restoration, so 'that it 
easily ranks among the finest 
country house hotels in Britain. 

It also provides a rare 
glimpse Into the upstairs- 
downstairs world of the 18th 
century. Upstairs, guests dine 
in splendour, or loll graciously 
abed — all of the bedrooms 
overlook parklands created by 
Humphry Kept on in 1793. 
(Today’s renovated interiors 


were supervised by Jean 
Monro, an authority on 18th- 
century decoration). 

Downstairs, guests can view 
the early kitchens, a fine 18th 
century linen room, a servants’ 
hall, a billiard room and wine 
cellars — all again in nse 
today. But do not kiss anyone 
on the back stairs. 

In 1982, Ston Easton received 
the Egon Ron ay Gold Kate 
Award for hotel of the year. 
Since then, standards haven't 
slipped a Jot As the Good 
Hotel Guide 1987 said when 
awarding it a Cdsar award for 
comprehensive excellence as a 
luxury country house hotel: 
"An immaculate country house 
hotel in appearance and per- 
formance, the Sme (Beys’ grand 
Palladian villa also deserves 
an award for its contribution 
to architectural and horticul- 
tural conservation." 

• Ston Easton Park is near 
Bath, Somerset, BA2 4DF. Tele- 
phone 076-121-631, telex 444738 
(Avostl G). A doable room is 
£96 a night, four-poster doubles 
£133-£199, suites £190. Rates 
include mor ning tea, continental 
breakfast, service and VAT. 
sjmmpiKny available. Children 
under 12 not accommodated. 

Michael 

Thompson-Noel 


or rather early morning specia- 
lists include the Otto Zotu and 
former gay bar Distrito Distinto. 
The black colony can be found 
at the Ebano. 

But for the distinctive 
Barcelona mix of the earthy 
and the Intellectual you still 
have to begin at the Rambles. 
These are one tree-lined street 
bearing several names, going 
back from the statue of 
Columbus and the old harbour 
buildings, redolent of Cuban 
and South American empire. 

You cannot sit oat at the 
cafes until spring (although you 
still can in the Placa de 
Catalunya), but meandering 
along the central pavement, 
past the day-and-night book- 
stalls, the flower-stands and the 
caged birds, you can survey the 
progression from bottom 
upwards. In the lower Bamblas 
you may spy the sex-shop 
which is next to a velvety bar 
and underneath a medical 
clinic. Further up is the splen- 
did Boqueria food market, 
worth visiting just for the 
hairdos of the matrons who tend 
the stalls. But the Ramblas are 
also the Liceu. Spain’s premier 
opera house, and the Poliorama, 
home of Josep Maria Flotats* 
distinguished theatre company. 
Opposite is the Hotel Con- 
tinental of “ Homage to 
Catalonia" fame. Rooms start 
on the thir d floor; Orwell went 
one better by spending a night 
on the roof. 

At night the Ramblas are a 
congregation point for all 
known varieties of the human 
spedes, and some more besides. 
Be Rambla-wise — any appur- 
tenances may be snatched. 

A stroll off to the right takes 
you to the Gothic quarter, 
which as well as the cathedral 
contains a unique ensemble of 
civilian Gothic architecture. 
Through the alleys to the right 
of the cathedral entrance, the 
pentagon-shaped Placa de Sant 
Felip Neri has the shaded air 
of a comer so quiet that it has 
been forgotten. He Generalitat, 
seat of the Catalan government; 
is well worth a Sunday-morning 
visit Across the Placa de Sant 
Jaume, the city hall hides its 
attractions behind a 19th- 
century neo-classical front. 

Next to this is another old 
district the Ribera, favoured 
by artists and home of the 
Picasso muse ums not the defini- 
tive collection of the ' new 
Picasso museum in Paris, but 
full of does to the artist’s for- 
mative years and housed in an 

enchanting building. 

If, on the other hand, you go 


straight up the Ramblas, past 
the square, you will find an- 
other Barcelona. To the right 
of the Rambla de Catalunya is 
the heart of the Eixample, the 
dty extension that gave vent 
to its tura-of-century architects 
and especially to Antoni Gaudi. 
a fanciful genius who was run 
over by a tram 60 years ago. 
One block of Passeig de Gracia, 
numbers 37 to 43, provides an 
assorted sample of "Modernist" 
— their version of art nouveau 
—styles. Across the road at 
number 82 is the famous undu- 
lating Gaudi building known as 
the “Pedrera" or “quarry". At 
Arago 255. another modernist 
edifice is being converted into 
a foundation for Antoni Taples, 
doyen of Catalonia’s living 
abstract painters. 

If you enjoy Gaudi. you will 
want to visit his folly, the 
Sagrada Familia. which he took 

over in 1891 and which is still 
unfinished: the main nave may 
be completed by 1992. (If you 
don’t, better not say so in pub- 
lic). 

The hill of Montjuic, where 
the main Olympic installations 
will be, is worth the effort 
Of the various contraptions for 
getting up, the easiest is to take 
a taxi. The Museu de Arte de 
Catalunya has two unmissable 
collections, one of Romanesque 
frescoes and polychrome figures, 
the other of 14th and 15th cen- 
tury altarpieces, plus a good 
view of the city in Its shallow 
bowl. Go there first since it 
closes at 2pm and walk over to 
the Fundacio Miro (urincioally 
works by the late Joan Miro, 
that most playful of modem 
painters), which does not open 
before 11 am. 

Other things you can do well 
besides edifying yourself are 
eating (the finesse of the Cata- 
lans goes through into their 
cooking) and playing, and that 
does not only mean amusement 
parks, although there are two of 
those. For adult games. Bar- 
celona still lives up to its no- 
holds-barred reputation. Sexual 
services on offer, from the 
luxury to the do-it-yonrself, are 
explicitly advertised in the 
classified columns of El Perio- 
dico and even the very staid La 
Vanguard! a, complete with full 
price lists and as many 
"French" and "Greek" 
specialities as a resturant guide 
to Soho. 

The most expensive turns 
out to be the "special sado 
cavern and submission.” Here 
in the realm of Gomorrah, 
pleasure is cheaper than pain, 
and AIDS appears to be 



Street scene m the “murky and dangerous” Barrio Chino 


Niek Baker 


blithely ignored. The police 
vice squad is delightfully 
known as the “ tit squad.” 

The Barrio Chino red-light 
district, to the left of the 
Ramblas as you go up, used to 
be fashionable among French 
writers out to s'enmnaUler — 
mix with the dregs — but is now 
considered only a shadow of 
what it was. It has, in any case, 
nothing to do with the Chinese, 
of whom there are very few, 
but pursuers of authenticity can 
be comforted by tbe fact that 
it is still both murky and 
dangerous. 

Over the other side of the 


Ramblas you can see drugs 
change hands in Placa Reial. 
Junkies are also very much in 
evidence in the old fisherman’s 
quarter of Barcelona, an area 
which has the advantage that 
you can park your car outside 
the restaurant But then, you 
are warned not to. That too. 
is part of Barcelona, and it is 
hard to believe the Olympics 
will sweep it away. 

• FLIGHTS: Iberia two a day 
direct from Heathrow, British 
Airways one a day from Gat- 
wick. Fares with both carriers 
start from £132 return. 
LANGUAGE: Increasingly gen- 


eralised use of Catalan rather 
than Spanish has some traps for 
the unsuspecting visitor. 
HOTELS AND RESTAURANTS: 
Best guide is the Michelin for 
Spain and Portugal. The Olym- 
pics will mean the virtual 
doubling of hotel capacity, with 
room for another 60.000. At 
present, the tourist board says 
that there is “almost always” 
space at weekends except when 
a trade fair is on. The tourist 
office at the airport can provide 
last-minute help. A computer- 
ised central booking system is 
planned. Like much else it is 
“ due to be ready by 1992.” 


THE NEW Daihatsu Charade 
range is a good example of 
Japan’s mastery of small car 
design. 

Tbe cars, which went on sale 
in Britain this week after a 
world debut at Geneva in March, 
are just under 12 ft (361 cins) 
long, nicely rounded — almost 
chubby — 3-door or 5-door 
hatchbacks. Despite efficient 
aerodynamics, they are roomy, 
enough to hold four adults com- 
fortably. The boot is of modest 
size but the back seats fold 
down to make a large load floor. 

The engine is mounted' trans- 
versely, driving the front wheels 
through a 5-speed gearbox or 
3-speed automatic transmission, 
and the suspension is all-inde- 
pendent. 

So far, it all sounds like any 
other modern supermini but 
there is more to it than that 
The seven new Charades -7- and 
they are tbs third collection of 
models of that name to be 
launched in 10 years — all 
have 1 -litre capacity, 3-cylinder 
engines. 

There are, however, two trim 
and equipment levels (CS and 
CX) and four different varieties 
of the same engine. The CS and 
CX models, including the auto- 
matic, have a carburettor 
engine, as does the petrol turbo. 
The CS and CX diesels are 
turbocharged ahd the hottest 
one of the lot, the GTi, has a 
fuel injected engine with four . 
valves per cylinder, turbo- 
charging and an intercooler. 

Power outputs range from 47 
horsepower (the diesel turbo) 
to an astonishing 99 horsepower 
from the GTi's multi-valve 
engine. They allow Daihatsu to 
make two interesting claims for 
the new Charade. First, that the 
range includes the most econo- 
mical car sold in Britain. Second, 
that the GTi is the most power- 
ful 14itre car in the world. ■ ■ 

The diesel turbo returns 7R5 
mpg (3.0 litres per 100km) at a 
constant 56 mph (90 km/h) in 


A SPEEDY 
MERCEDES 

MERCEDES-BENZ has rounded 
iff its 190 range by introducing 
U Britain a 134 mph (215 km/ 
1) version with a 2.5 litre, 166 
lorsepower six-cylinder engine 
ihoehorned under the bonnet 
Che top speed is unimportant 
Hit the slingshot acceleration 
mpresstve and, discreetly used, 
1 great aid to safety. 

Despite the extra' weight up 
front, the six-cylinder 190 has 
die same impeccable h an dling 
is the fouMylinder models, 
which also, incorporate a 
lumber of small improve* 
Bents. Among them are 
mailer ' steering wheels nod 
arger' external mirrors. The 
1 90E 2.3 costs £18,000, or. 
tearer £28,000 when fitted with 
he optional extras most 
Mercedes buyers go for. such 
is' a good radio.’ automatic 


Supercharged spin 



Hie new Daihatsu Charade. Small the 
fast or ultra-economical aceo 


jh roomy, beautifully made, and very 
ing to your choice of engine 


normal nse. The GTi, which has 
a claimed maximum of 115 mph 
(185km /h), win show nearly 40 
mpg (7.06 liters per 100 km). 
But it could be a lot less if one 
kept flooring the accelerator be- 
tween the curves of a sinuous 
mountain' road, like the one 
from the coast to Ronda in 
Southern Spain. 

When I tried it there a few 
weeks ago it shot up this beauti- 
fully engineered highway like 
a supercharged roller skate, 
holding the road, securely and 
cornering' with precision. Ride 
comfort Is not its forte, though; 
the stiff springs, ultra low pro- 
file tyres and firm dampers see 
to that 

Three-cylinder engines have 
been a speciality of Japanese 
manufacturers. They believe 
their efficiency — a cylinder of 


about 330 cc capacity is held to 
be ideal— makes up for any 
roughness. In fact except when 
ticking over and pulling hard 
at' low revolutions, one is hardly 
aware of the missing cylinder. 
The foster they spin, the 
smoother they feel. 

. The 5-speed gearbox works 
as delicately as an electric light 
switch. The steering is light— 
and the 29.8 ft (9 metres) 
turning circle so tight— that 
they feel as nimble as a mini in 
town and seem to be parkable 
anywhere. 

A slanted and carving nose 
and steeply sloped windscreen 
provide excellent forward visi- 
bility!. The Charades, other 
than the sporty GTi, ride as 
well as most cars in their class 
and have that taut, refined feel 


about them that a Honda 
owner would recognise and 
approve. 

Bearing in. mind the hard- 
ness of the yen, the prices 
appear most reasonable, start- 
ing at £54199 for the CS and 
going up to £7,699 for the GTi. 
All the things one really needs 
in ' a small car are part of the 
package — for example, lami- 
nated windscreen, 5-speed gear 
box, halogen headlamps, two 
speed intermittent wipers and 
split rear seat backrest. 

Only a few extras are listed, 
among them a powered sunroof 
for £450 (though not on the CS 
models) and electric windows 
and central locking for £300 on 
the GTi only. 

Stuart Marshall 



transmission and electric tflt- 
anddide sunroof. It has ABS 
brakes as standard. 

Mercedes-Benz sold over 
20,008 cars hare last year; more 


than 7,000 of them 190 models 
of various kinds. It still cannot 
meet demand for the mid-sized 
W124 range with engines from 
two-litres to three-litres. Sales 


of the big S-Cflass. the cars 
which are still the yardstick for 
competitors in the luxury class, 
are stable at 2,500 a year. 

SJVL 


Holidays and Travel 
Overseas 


Yugoslav Airlines 
Announces.;. 

New Flights to ; 
Calcutta & Peking . 

From 3rd May 1987 


For hither details contact 
our Main Agent 

Skylorri Travel Ltd 

2 Denman Street London W1 
TeJ:01 -439 8007/3521/2070/2242 1 


Sett Catering 


A CHOICE of very *ne V rites with thHr 
own private peels en o» Cote cfArur In 
tite Phlmer and Faricer Blue Book. Some 
availability August and excellent value 
In May. For your copy ring (049 4B1> 

CAKTABKICA. H. SPAIN — Perfect bMCb 

Villa, cteees 12. Available May. June 
or pert Sep te mber. 0449 740689. 


OVERSEAS SHOOTING 

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200-3.500 pheasants per day 
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200-1.000 partridges per day 
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Further programme % In 
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Major Well Ramsay 
AbarteWy. PHI 5 2JE. Scotland 
Tat: 0967 20623/20540 - Telex: 76371 


HOLIDAY ADVERTISING 
APPEARS EVERY SATURDAY 
& WEDNESDAY 
For details phone 
Deirdre V enables 
01-248 8000 ext 3231 


U.K. Hotels 


AN EXCLUSIVE AWARD ! 

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STAVING IN LONDON7— Take a luxury 
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SALMON FISHING FOR SALE 

Syndicate t bares available in one el 
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63 Salmon In 1986. The right to fish 
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Harris & Stokes, 126 Bun Street 
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Russell Baldwin fc Bri ght 
Leominster - Tel: 0568 4123 


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annual survey on Corporate Finance on 

JULY 23 

among the subjects under review will be: — 

it The City revolution and how the market 
has changed since Big Bang 

it The Corporate Finance advisors 
UK Securities Houses 
The Foreign Securities Houses, Account- 
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XVQK WEEKEND FT 


Financial Times Saturday May 3 l98 ? 


D 1 V E R S I O N S 



Great Collectors (2): Antony Thomcroft profiles 
Malcolm Forbes, whose interests range from Faberge 

eggs to toy soldiers 

A family affair 


'■ THE ONLY time my father 
said. 'Buy it at any cost' was 
last December when the bottle 
of 13th century Chateau 

Laflte with Thomas Jefferson's 
initials on it came up fcr sale 
at Christie's. 1 ended up paying 
£105,000. He went through the 
roof. 

"On the other hand when I 
was the under-bidder on 

Mussolini's Declaration, of War, 
whxch was ten times its fore- 
cast at £100,000, he was just 
as cross that I did not get It ” 
The speaker is Kip Forbes 
talking about Malcolm Forces, 
owner of Forbes Magazine and 
one of the world's great col- 
lectors of art. 

Malcolm Forces has passed on 
his enthusiasm to his tour sons, 
who have the task of adding 
to the Forbes collection, whlcn 
is legally owned by the maga- 
zine to ensure its future when 
Malcolm, now 67, departs. In 
addition they all have their 
own modest collecting passions, 
Trimmed to their personal 
finances: Kip's is memorabilia 
of Napoleon 111, much less 
pricey than any paraphanalla 
licked to the first Napoleon. 

The Forbes collection is idio- 
syncratic, not to say quirky. 
At an early stage Malcolm 
Forbes decided he would not 
buy Old Masters — too few of 
the really good ones came on 
to the market to be able to 
build up an important collec- 
tion. Instead he has concen- 
trated on " popular, " almost 
flashy, antiques. By far the 
biggest investment has been 
in works by the Russian 
jeweller Faberge. Today 
Forbes owns 12 of the 53 
Imperial Easter Eggs, given 
by the last Czars to their 
family. The Kremlin owns 10. 
In all Forbes has over 300 
Faberge pieces, a total only 
beaten by the Queen. 

Faberge may be too ornate 
for some aesthetic tastes but no 
one can dispute his skill and 
imagination as a craftsman and 
designer. But what of the other 
elements of the Forbes collec- 
tion — the unrivalled group of 
around 100,000 toy soldiers kept 
in a museum in Tangiers, where 
the family has a home; the 
model boats; the balloons? 
Patriotism perhaps determines 
the other important buying 
passion— documents relating to 
the American past, but Kip 
shows signs of his father's taste 
for the flamboyant with Ms 



Malcolm Forbes 


special responsibility, Victorian 
pictures. 

These are kept in London, in 
Battersea Old House, a 17th 
century mansion attributed to 
"Wren which is squeezed in 
between a council estate and the 
Thames. Forbes was given a 99 
year lease on the bouse on the 
understanding that he shored up 
its rotting fabric. Today it pre- 
sents a shining smart face 
(although there are unre- 
generated partsli. More than 
that, it shows off the finest cod- 
lection of Victorian paintings 
outside a very few museums, 
Malcolm Forbes tolerates 
rather than enthuses over the 
Victorian pictures. They came 
about as the result of some 
badinage between father and 
son. Kip was rather dubious 
about a Monet of water lilies 
that Malcolm was planning to 
buy in the late 1960s for 
3100,000, He pointed out that 
for one routine Impressionist the 
magazine could buy an un- 
rivalled group of Victorian 
paintings which at that time 
were just starting to return to 
critical favour. 

Malcolm gave his son Ms 
bead, adding that he would not 
mind so long as the pictures 
were displayed well away from 
him. Today the 300 Victorian 
paintings are usually In Batter- 
sea, with many oat on loan to 


satisfy the current insatiable 
public appetite for Victorian 
art. The pictures hang from 
the walls in profusion, as in any 
late Z9th century art-loving 
home. There are gaps — few 
portraits or landscapes for 
example, and little from the late 
19th centry social realist 
schools — but anyone soft on 
senimental genre paintings, or 
neo-classical Academic art, will 
be well pleased. 

At first Kip kept to paintings 
shown at the Royal Academy in 
Victoria's reign, but the limita- 
tion has slipped away. So has 
the 3100,000. Now Kip Forbes 
has to compete with his 
brothers for cash. It is largely 
determined by how well the 
magazine is doing. 

With the original float Kip 
acquired Waternouse's “ Mari- 
anne,” depicting her being led 
to her execution, wMch now 
do min ates the staircase; Tissotis 
“ Goodbye — On the Mersey;” 
and John Philips “The early 
career of Murillo," among 30 
pictures bought in three 
months. Soon the desire to 
acquire a great, and by this 
time costly work— like Arthur 
Hughes' “A birthday picnic,” 
forced Kip Forbes to dispose of 
15 p ainting s. But the attrac- 
tion of the collection is its 
catholicity. Major names like 
Rossetti, Mill ais, Ho lman Hunt 
and Frith nestle with artists 
long forgotten. There may be 
no masterpieces, and few 
“ museum " pictures, but any 
excuse should be seized to get 
an invitation to Old Battersea 
House: It opens its doors to 
worthy arts groups. 

Today the Victorian paintings 
are central to the Forbes col- 
lection. The Faberge seems 
more of an obsession, a battle 
with the Kremlin to acquire 
the most capitalism acting as 
a modem patron to the last 
great artist of Czarist Russia. 

Malcom Forties has his 
acknowledged beauties — the 
Renoir and the Rubens that 
decorate his office — but most 
things have been acquired be- 
cause he likes them. He rather 
bewails the fact that by owning 
the best collection of Faberge, 
be Is forced to buy for the 
sake of completeness rather 
than because he covets par- 
ticular jewels. 

There is no annual budget 
for buying. If a very desirable 
piece comes along — like the 
Fabergfi egg which Sotheby's 



The 15th anniversary Faberge egg, 1911, presented 
by Czar Nicholas n to his wife Alexandra Feodorovna 


sold in 1985 — Forbes will bid 
up to almost 32m for it. It 
should have exhausted that 
year’s available funds, except 
that the Jefferson wine and a 
particularly good Albert Moore, 
to say nothing of another egg, 
also came on the market in 
1985 and were snapped up. On 
average not much more than 
$lm is spent annually: but by 
now the Forbes collection must 
be worth $100m. 

The attraction is that it is 
not taken too seriously: if the 
magazine was faced with finan- 
cial disaster the works of art 
would be sacrificed with the 
same insouciance with which 
they were acquired. But this is 
unlikely to happen. They will 
continue as the hobby of a 
remarkable family. They are 
fairly accessible to the public, 
especially at the company’s HQ 
in New York, and they are the 
kind of collectibles that the 
public likes. 

The American memorabilia 
needs no justification: a great 
nation should be prepared to 
pay heavily for its history, even 
if the 18th. century claret 
deteriorated when put on dis- 
play with such treasures as the 
original map of the Mason- 


Dixon line, in price terms the 
omy item to rival a raoerge 

egg- 

Malcolm Forbes still has to 
approve every purchase. He is 
very involved with the Faberge, 
anu tne memorabilia (Ms first 
purchase, as a student, was a 
Lincoln autograph which he 
paid for over years). His own 
personal tastes are as bizarre 
as the public collection — he 
buys Churchill memorabilia 
(understandable for such an 
over-sized figure), and Gals- 
worthy — the most out-of> 
fashipn author imaginable. 

In intellectual terms the 
Forbes collection is light-weight 
But the passion is bean-felt 
and there is genuine expertise 
in the family. The toy soldiers 
and the model boats give great 
pleasure, and, along with the 
Victorian pictures and the 
Faberge, represent the skills of 
the (recent) craftsmen who 
made them. Few would regret 
that Malcolm Forbes, when he 
decided to spend some of bis 
accumulating wealth on collect- 
ing, chose such fan sectors 
rather than assembling Old 
Masters, or Impressionists, 
which have already become 
museum properties. 


Sally Watte visits Mark Hall Cycle Museum in Harlo w 


On your bike 


HAS ANY invention taken 
longer uum the bicycle to per- 
fect? Or lor that matter, to get 
started? Although it was first 
foreseen by da Vmci and JLMlxer. 
in their drawings of man- 
powered machines of similar 
appearance, nearly 300 years 
elapsed bexore the first vehicles, 
wltn three wheels or four, were 
seen in England in the late isth 
century. 

Then began the bike's long 
history of absurdity and en- 
gineering genius as it wound its 
tortuous way from velocipede to 
the safety bicycle that, with its 
many refinements, nas been 
around for the past 60 years. 

This history is celebrated at 
Mark Hail Museum, set In 19th 
century stables at Harlow, 
Essex. (The local council won a 
Civic Trust award for the 
stables’ conversion to a special- 
ist museum.) it opened In 1932, 
drawing on the collection of 115 
vintage bikes built up by John 
Comas, now the curator. Mr 
Collins spent 31 years in Old 
Harlow with the family cycle 
business which his grandfather 
opened in 1396, the bicycle's 
heyday. 

The 66 machines shown are 
in chronological order, from 
Denis Johnson's hobbyhorse oi 
1818, which was among the 
earliest made in Britain. With 
hindsight, it is blear that the 
designer's . priorities were 
wrong: he incorporated a 
padded rest for the elbows but 
there were no pedals, so 
propelling the macmnes must 
nave felt like attempting to 
walk while sitting down. Not 
surprisingly, the cartoonists 
guyed it and the hobbyhorse’s 
day soon ended. 

During a century of transi- 
tion, the bicycle remained a 
challenge to young and not so 
young men who, inevitably 
Dowler dad, happily endured 
discomfort and humiliation 
while striving to master these 
often fantastic creations. 

“To get off while the bicycle 
is moving, throw your leg over 
the handlebars;” is one piece 
of advice In an illustrated in- 
struction manual for a later 
model. Another deals with more 
favourable conditions: “On 

downhill stretches you can use 
the footrests to rest your legs.” 

Two Frenchmen had the idea 
of fitting pedals and cranks to 
the front wheel, and the next 
stage was the boneshaker of 
the later 1860s which, as the 
wheels were shod with iron and 
the frame made of iron or wood, 
vibrated noisily. 

The superior 1868 model in 



An 1869 wooden penny farthing 



Treasure Trove 


the museum boasts a forged 
iron frame with brass handle- 
bars, brake and wheel hubs, 
and would have cost about £15. 

According to Mr Collins, 
some early blacksmiths smashed 
the velocipedes, fearing that 
they would damage the coach- 
and-horse trade. 

Although the boneshaker was 
popular and widely used among 
upper- and middle-class society, 
It was soon replaced by the 
“ ordinary ” later nicknamed 
the penny-farthing and a 
familiar sight on English roads 
for 20 years. 

The 1880s were an important 
turning point with the intro- 
duction of the safety bike, based 
on rear drive with wheels of 
equal diameter, and then, in 


1888, the Invention by John 
Boyd Dunlop of the pneumatic 
tyre. Shortly afterwards, the 
eyrie iaduscry boomed. 

Women were also joining the 
bicycle brigade, on two- 
wheelers, trikes and tandems. 
An 1892 example of a woman's 
safety bike had an open-frame 
design to accommodate the long 
dresses. Then came the tandem, 
and though in the 1890s the 
woman rode at the rear, by 
1905 she was sitting la front, 
the man steering from behind 
on a higher saddle, so that ho 
could see over her head. 

With the new century the 
bike became an Indispensable 
part of leisure. Cycle raring, 
already popular, gained ground; 
clubs held weekend and Bank 
Holiday outings between the 
wars; a child's sidecar, shown 
with a touring tandem, recalls 
family jaunts of the 1930). 

A large section of photos and 
models shows the cycle in three 
wars. Folding machines were 
first produced around 1900 for 
the South African war and again 
in 1914, while the 1940 Para- 
troop Folder, used by assault 
units in World War Two, was 
also invaluable in night 
operations. 

Mark Hall Cycle Museum, 
Mushham ltd, Harlow, Essex. 
TeL 0279 39680. Open 10.00 am 
to 5.00 pm daily. Entrance: free. 


SPORT: Ben Wright describes the problems that bedevil American baseball while Jason Steger investigates the boom in British gymnastics 


LOVERS of cricket are under- 
standably scornful of baseball, 
at best conceding that it is no 
more til an a sophisticated ver- 
sion of rounders, a game 
played mostly by schoolgirls. 
But, having watched major 
league American baseball for 
20 years, I find myself increas- 
ingly intrigued by the fascinat- 
ing blend of its subtle nuances 
and feats of astonishing 
athleticism. 

Alas, America's national 
summer sport is also bedevilled 
by crass commercialism and all 
the anendant pitfalls thereby 
created, in the shape of salaries 
that make professional soccer 
players — and most other Ameri- 
can professional sportsmen, 
other than jockeys-— look like 
very poor relations. 

The magazine Sports Illus- 
trated, in a compelling pre- 
season survey, published the 
salaries of all 624 players on 
major league team rosters for 
the season's opening day. The 
total was a quite astounding 
3256,296,950, which reads more 
like the national debt The 
average per player was 
S410.732, ranging from the 
$2.46m of the Baltimore 
Orioles' first baseman, Eddie 
Murray, to the rookie minimum 
of 862,500. 

Murray, a brilliant Mtter and 
fielder, and an explosive 
runner, has made a slow start 


Sniff of scandal hits super-rich sluggers 


to the season. His much less 
well paid team-mate, shortstop 
Cal Ripken Jnr (salary $L35m), 
who is the son of the team's 
manager, has bit eight home 
runs and boasts an American 
League-leading 27 runs batted 
in with a batting average of 
.351, bettered by only four 
rivals in that league. 

Despite Ripken, however, 
Baltimore languishes 10 games 
behind the East Division's fast- 
starting Milwaukee Brewers, 
who last month equalled the 
major league record by win- 
ning their first 12 games. 

Ironically, the average salary 
of the Orioles, due largely to 
Murray, is $550,229. fifth among 
the 26 teams in the American 
and National leagues. The 
Brewers' average of $266,542 
ranks 23rd. 

Over in the National League, 
the world champion New York 
Mets, the team everyone loves 
to hate, have troubles of their 
own. In March, their ace 
pitcher, 22-year-old Dwight 
Gooden, tested positively for 
cocaine and was ordered to a 
drug rehabilitation centre in 
Manhattan, or to face suspen- 


sion. Gooden was discharged 
after being treated for a month, 
but is unlikely to reappear for 
the Mets before June. 

His troubles are symptomatic 
of a sport In which heroes are 
rewarded so quickly with out- 
rageously inflated salaries. In 
three seasons, Gooden has pro- 
gressed from Rookie of the 
Year to the Cy Young Award 
for best pitcher of the year, and 
now earns $1.5m. 

Despite the fact that the black 
youngster behaved erratically, 
has frequently tangled with the 
law in his native Tampa, 
Florida, since 1985, and was 
placed on three years' probation 
there last December, both bis 
team-mates and the Mets* 
management expressed ignor- 
ance of, and astonishment at, 
bis cocaine abuse. 

I find such a reaction rather 
hard to swallow. In fact, 
Gooden is the latest in a 
lengthening line of pitchers and 
other stars whose bouts with 
cocaine and other drugs have 
been well documented. This is 
hardly cause for surprise, sad as 
it may be, with so much money 
available to buy these expen- 



sive substances. 

Unfortunately for the Mets, 
the remainder of their pitching 
staff, so powerful last season, 
has been largely ineffectual in 
Gooden's absence. In spite of 


this, the champions have some- 
how managed to stumble along 
in the fiercely contested East 
Division, occupying, as I write, 
third place, only 1£ games 
behind the division-leading 


Chicago Cubs. The last-placed 
PhiladelpMa Phillies, however, 
are only another four games 
behind the Mets. 

A large part of baseball's 
appeal lies in this ever-present 
unpredictability. Although the 
season is little more than a 
month old, there are probably 
red faces among the experts on 
the staff of Sports Illustrated. 
After spring training, they fore- 
cast that the Cleveland Indians 
would win the American League 
East Division with Milwaukee 
last At present those positions 
are exactly reversed. 

They picked the Texas 
Rangers to win in the West with 
the Seattle Mariners last This 
week, Seattle were one game 
out of first place in another 
hotly-contested race, and Texas 
were dead last 

On the positive side, the 
Cincinnati Reds have been as 
brilliant as was expected in the 
National League West thanks 
in no small part to the magnifi- 
cent hitting of Eric Davis. The 
Reds’ legendary manager, Pete 
Rose, who has played alongside 
the best for 20 years, describes 


Davis as the most talented 
player of them alL Facts are 
bearing out his judgment 

Young Davis heads the 
league’s batting averages with 
.411 and leads in five other 
statistical categories. He is 
second In two more, including 
stolen bases. With notable hit- 
ting support from Kel Daniels 
and Dave Parker, the Reds are 
nevertheless only half a game 
ahead of another surprise 
packet' the San Francisco 
Giants. 

likewise, the resurgence of 
the Chicago Cubs • in the 
National League East has been 
powerful hitting of veteran 
Andr6 Dawson, who moved 
from the Montreal Expos in 
tiie close season because his 
ailing knees are better suited 
to real grass than to artificial 
turf, and whose eyes have 
always been better attuned to 
daylight rather than floodlit 
largely attributable to the 
Play. 

The Cubs are the last 
remaining team playing after- 
noon baseball at home. To date, 
Dawson's nine home runs are 


second best only to the 12 by 
the Reds’ Davis. The pair's 
salaries are hardly in keeping 
with their present worth, 
though— Dawson signed for a 
mere $500,000 and Davis earns 
$300,000. 

If the players' salaries are 
so inflated that complacency 
becomes virtually inevitable, 
the same is hardly true of 
their managers. Cincinnati's 
£? c s e. on $750,000, earns 
$250,000 more than his nearest 
rival, Tommy Lasorda of the 
Los Angeles Dodgers. But the 
Dodgers' players have the 
•M&SL average salary of 
$580,250, ft* Seattle Mariners 
the lowest a t a mere $1S6,146. 

Significantly, two of the four 
poorest-paid managers, at 
$100,000 each — new recruits 
Tom Kelly of the Minnesota 
Twins and Tome Trebelhom 
°c * Ml lwaukee — have steered 
their unfashionable clubs into 
the lead In the American West 
and East divisions respectively. 

There might be a lesson here, 
in fact, there are belated signs 
that the ever-upward salary 
spiral is levelling off as the 
club owners get together and 
establish a little much-needed 
solidarity in the negotiating 
arena. This is not a moment 
too soon for the health of the 
sport, or for its participants. 


BRITISH gymnastics champion 
Lisa Elliott flies out for the 
European Championships in 
Moscow next week with a 
British squad that is brimful 
with confidence. 

Against a background of 
booming interest in the sport in 
Britain and next month's open- 
ing of the British Amateur 
Gymnastics Association’s show- 
piece. the National Gymnastics 
Centre, at Lilleshall, 17-year-old 
Lisa clinched second place in 
the recent Vitalite Champions 
All — the competition in which 
Nadia Comaneci burst onto the 
international scene in 1972 — 
and was pipped only by the 
highly - rated Romanian, 
Camelia Voinea. 

And the British squad gained 
further encouragement when 
Andrew Morris, the men's 
national overall champion, re- 
pented his second place of 1986. 
In world terms. Britain ranks 
about 16th out of the 87 com- 
pering countries, but whereas 
In the past few years the only 
competitor likely to have made 
his presence felt was the almost 
ubiquitous Morris, now things 
are different. 

John Atkinson. technical 
director of the BAGA, says that 
progress over the past couple of 
years has been considerable. 
“ I would use a shooting analogy 
to describe our position: be- 
fore, we bad Andrew getting 
around the middle inner and 
that was it But now we have a 


Hopefuls queue for the floor show 


good grouping around it to sup- 
port further challenges. 

“This was reflected by the 
fact that our two champions won 
silver medals in the Champions 
All, and the very good support 
they got in that competition 
from David Simpson and Karen 
Hargate.” 

Lisa is well aware of her 
limitations and inexperience 
when it comes to the major in- 
ternational events. " IH be 
happy to finish in the top 36 in 
Moscow,” she says, “and just 
see what the other competitors, 
the judges and the atmosphere 
are like. Hopefully that will 
allow me to improve fOr the 
World Championships In Rot- 
terdam in October. 

“ Those are my two main aims 
for the year, plus the defence of 
my British title. But I am 
working towards next year’s 
Olympics, when m be almost 
IS and at my peak. Then 1 
suppose IT1 have to think about 
retiring.” 

John Atkinson believes that 
Lisa is too inexperienced to 
win a medal in Moscow, but 
sees her as a tremendous poten- 
tial talent. “You have to rem- 
ember that Lisa's at the begin- 
ning of her career. But by the 
end of it she may well prove to 


have been the greatest gymnast 
we've ever had. 

“Coaches who have worked 
with her have been very im- 
pressed. S tanka Pavlova, the 
leading Bulgarian choreo- 
grapher, rated her as one of 
the finest gymnasts she has 
ever worked with." 

But there is no doubt that 
the BAGA still has problems — 
not only in finding the talent 
to compete meaningfully with 
the likes of Voinea and Yuri 
Korolyov, the Soviet Union's 
two-times men’s world cham- 
pion. but providing the train- 
ing facilities and funding de- 
velopment of that talent. 

The recent visit by three top 
Soviet coaches on a six-week 
coaching tour of Britain cer- 
tainly highlighted the differ- 
ences between us and the 
Eastern bloc. 

"In Britain there Is no state 
support for gymnastics,” says 
Vladimir Shevchuk, the coach- 
ing director at the Krasnador 
gymnastics training centre in 
Siberia, 

“As a result, there are no 
qualified coaches, no colleges 
or specialist establishments. 
Consequently, the only people 
who can be trained are general 


physical education teachers. 
Like their students, they are 
very enthusiastic, but tbat is 
not enough to produce world- 
beaters. 

“In the Soviet Union we have 
a slogan: 'It’s the staff who de- 
cide everything’. That means 
if they aren't qualified enough, 
the gymnasts suffer.” 

Atkinson is very aware of 
the need to improve the stan- 
dard of coaching for home- 
grown talent, and looks for- 
ward to the opening of the 
Lilleshall school. “At the 
BAGA we have a two-pronged 
approach — we want to train the 
coaches, and we also want to 
train the performers. But un- 
doubtedly increasing the num- 
ber of qualified coaches is 
crucial to our success in world 
terms." 

Phase one of the Lilleshall 
project will provide intensive 
training sessions both for gym- 
nasts and coaches under the 
direction of Atkinson and 
Eddie van Hoof, the men's 
national coach, and Colin Still, 
the women’s national coach. 
The educational facilities, 
which will enable young gym- 
nasts to stay at Lilleshall in 
the same way that young foot- 


ballers stay at the Football 
Association’s School of Excel- 
lence, will be dovetailed in at 
a later date. 

While enthusiasm is vital — 
Lisa trains six days a week 
after school and travels a total 
of about 200 miles to do so — oh 
its own it Is not enough. 

Britain has about 4m 
amateur gymnasts, ranging 
from those at a purely recrea- 
tional level to those at national 
grade, plus 800 registered 
dubs. But it has only one major 
medal to its credit — Nik 
Stuart’s silver for the floor 
exercises in the 1957 European 
championships. 

Atkinson sees a basic conflict 
between the needs of education 
and training which is hindering 
the progress of British girls 
and boys. 

“In this country the children 
are always under pressure. In 
most places, before a gymnast 
can actually start training, all 
the equipment has to be 
assembled and then they are 
limited for time — there is big. 
demand for the space. We have 
the potential but what we do 
not have is the structure and 
finance. 

"When a club is set up it 


usually ban to share premises 
and hire facilities. In the 
Eastern bloc the backing is 
total and the system is geared 
to spotting talent There the 
kids train at a recreational 
level at school, bat within reach 
of every school there is a gym 
dub where they can do extra 
work.” 

Lisa is in the first year at 
Spelthorne Sixth Form College 
and due to take A levels in 
mathematics and biology next 
year. 

"The. problem is that gym- 
nastics is not a national sport 
ih the same way that it is fi: 
the Russians. The teachers are 
very helpful and give me extra 
lessons, but once you get be- 
hind it’s very difficult to catch 
up, especially in a subject like 
maths. Til probably have to 
take an extra year over my A 
levels. But over there it's a lot 
more organised — gymnastics 
comes first.” 

The BAGA Is getting help to 
the tune of £500,000 to £750,000 
a year from sponsorship, which 
fcuids not only the major events 
but also award schemes- 

Kraft Foods is almost midway 
through a £500,000 three-year 
programme and topped it up 





with an extra £50,000 to see the 1 
Champions All competition into 
Its lfith year. On a less visible' 
but equally vital level, Coca- 
Cola runs an award scheme 
which allows children to win a 
badge once they can do seven 
out of 10 exercises from special 
wall charts. 

Nearly 1.5m badges have 
been, given out, and other 
schemes are sponsored by Gold 
Top raffle, Lilia-White, Midland 
Bank and Fhilishave. . 

Whether British gymnasts 
gain medal success in the near 


future or not. the Bj 
m ai n s optimistic if « 
protective about the 
the sport 

“It Is a boom spor 
BAGA development 
Tony Murdock. "Weal 
seven major events on 
cause we don't want pt 
set bored with it — lii 
or snooker. Attracting 
to gymnastics is not om 
problems; if we openei 
club every day of the 3 
would still have a wai 
,0f sue months." 




.Financial Times Saturday May 9 19S7 


WEEKEND FT XIX 


• D I V E R S I O N S 




Designed for summer living 


IT SEEMS a far cry- from the 
days when the smart garden 
was furnished with eye-searing 
colours and aggressively 
“ modeme ” shapes, when 
den departments were 
with gaily decorated parasols 
and the glint of white plastic. 
Today nostalgia rules. The 
spirits of Gertrude Jekyll and 
Edwin Lutyens hover ever the 
English garden, more powerful 
and omnipresent than any con- 
temporary garden guru. 

The smartest gardens are 
furnished with antiques, in the 
gentle, curving shapes beloved 
of our Victorian and Edwardian 
forefathers. Needless to say, 
these are not as easily tracked 
down as modern production 
line numbers. Some good places 
to start searching for genuine 
rustic antiques are:- Clift on 
Little Venice, % Warwick Place, 
London W9, which specialises 
In 19th century gothic and 18th 
century neo-classical pieces but 
there are lots of cast-iron, wood 
and stone pieces as well. 

Robin Eden, Pickwick, 
Corsham, Wiltshire; SN13 OJB 
sells genuine antique pieces in 


his own 'Wiltshire garden — 
everything from Victorian wire- 
work, furniture to sturdy park 
benches. He sells, besides, some 
good plain .wooden garden 
furniture in the old Lutyens 
tradition. 

Architectural Heritage at 
Boddington Manor near Chel- 
tenham, in Gloucestershire, is 
always a good place to go look- 
ing for things old, lovely and 
scarce, whether it be chimney 
pots or ornate wrougfat-iron 
benches, a piece of antique 
masonry or a fine garden gate. 

T. Crowth er and Son of 282 
North End Road, London SW6, 
and Crowther of Syoh Lodge, 
Busch Corner, London Road, 
Isle worth, Middlesex, are two 
more places for. those in love 
with romantic over-grown 
gardens— the sort that are 
sweetly disordered, that cry 
otit 'for an over-sized Eros, an 
ornate urn or a wonderfully 
over-the-top fountain. 

Clifton Nurseries, 5a Clifton 
Villas, Warwick Avenue, 
London W9, usually has some 
antique pieces in stock as well 


Lucia 
vander 
Rost 



as a large selection of pots and 
urns, benches and tables. 

Fortunately for those who 
find antiques too time-con- 
suming to track down and too 
expensive to pay for, there is 
now a large number of com- 
panies producing accessories 
for the garden in the true 
English mould. 

An old-established favourite 
to look out far is, of course, 
the Chatsworth Range, designed 
by David Mtinaric, made in 
Chatswortb's own workshops. 
Inspired, as yon might expect. 


by the great English gardens, 
this is the sort of furniture that 
never looks out of place. It 
is simple yet decorative, and 
the range includes benches, 
tables and chairs; There is 
always a good selection at The 
General Trading Company, 144 
Sloane Street London SW1, but 
most good garden departments 
now stock It 

Lloyd Loom furniture, the 
quintessential conservatory 
prop, has been snapped up in 
antique shops even in Its most 
battered forms — and lovers of 
the species have been known to 
pay outrageous prices simply 
to own the genuine article. The 
General Trading Company, as 
I mentioned a few weeks ago, 
has a good selection of genuine 
Lloyd Loom, all painted white, 
but there are now very good 
reproductions, brand-new ver- 
sions based on the old beguil- 
ing theme. 

Prices begin at £6950 for a 
table and go on up to £10550 
for a chair. Find them in one 
of the new Country Gardens 
garden centres — there are four 


branches, one at Didcot. 
Oxfordshire, at Cirencester in 
G Jo uc esters ire, Osterley In 
Middlesex and Codicote in 
Hertfordshire. All sell every- 
thing the well-furnished garden 
could possibly aspire to, from a 
‘ample daisy to enough trelMs- 
ing to satisfy the gardeners at 
Kew. 

More conservatory furniture 
on a nostalgic theme comes 
from Jeffrey Gold, the archi- 
tect behind Town and Country 
Conservatories. Made from 
willow grown in Somerset (the 
last bastion, it appears, of com- 
merciafty-grown willow In this 
country) the range features the 
curvy, soft, familiar shapes that 
aU the best, most old-fashioned 
conservatories used to boast. 
The white willow is picked in 
the spring, the buff-coloured 
willow in the autumn; which 
ever you choose the effect is 
seductively romantic. 

For the moment there are 
three pieces — a two-seater sofa 
which sells for £225 (ex VAT), 
a chaise-longue which is also 
£225 (ex VAT) and an arzn- 


SKETCHED above is a selection 
of some of the most beguiling 
garden adornments around. 

1. All the great country gardens 
had treillage of one sort or 
another. Traditional Trellis of 
24 Holland Park Avenue, 
London Wll (teL 01-229 3382) 
has six different trellis panels 
which can be linked in a variety 
of ways. This is the Gothic 
version. 

2. Camilla, a contemporary 
design, but it wonld look at 
home anywhere. Plain wooden 
slats, dark green frame. £725 
from The Architectural Trading 
Company, 219-229, Shaftesbury 
Avenue, London WC2. 


3. From the Chatsworth Car- 
penters, a plain white bench 
with a small heart motif. £195 
from The General Trading Com- 
pany, 144 Sloane Street, London 
SW1. 

4 and 5. Two pieces of romantic 
statuary from Architectural 
Heritage, Boddington, near 
Cheltenham, Gloucestershire. 
Prices for statuary start at 
about £200. 

6. Ornate garden trolley from 
Ornamental Ironwork Ltd., The 
Old Convent, Beeches Green, 
Stroud, Gloucestershire. 

7. For indoors or out (if for 
outdoors, stipulate the maple 
oil finish), a Rfecamier sofa in 
the Biedemeyer tradition. £14195 
from Marine time Ltd., Imperial 


Jamoa Fergus on 


Works. Perren Street, London 
NWS 3ED (tel. 01-185 38441. 

8. Steamer cluir, £149 (there 
is a matching foatstal!) from 
Steamer Furniture. 

9. Slone piglets, hand-carved 
in limestone, £207 each from 
Architectural Heritage. 

10. The Lotus Fountain, £420 
from The Landscape Ornament 
Company, Toysey House, Barley 
Mow Passage, Chiswick, London 
W4. 

11. Handsome 5-ft tall cast-iron 
centrepiece — jnst the sort of 
ornate wonder Architectural 
Heritage can supply. 

12. Lloyd Loom reproduction 
chair. £105.50 from Country 
Gardens at Didcot, Cirencester, 
Osterley and Codicote. 


chair which is £125 (ex VAT). 
There are cushions for each 
piece, at £45 (covered) for the 
sofa and chaise-longue, £27 for 
the chair. Buy them direct 
from Town and Country Con- 
servatories, 53 EtUngton St, 
London N7 (tel: 01-609 9919). 

Garden furniture derived 
from tiie grand old days of the 
luxury liners is irresistible. 
Usually made from sturdy 
wood, they are the perfect 
accessory for those who 
like to dream their summer 


days away. Meg and Bernard 
Ellis spend most of their days 
making musical instruments, 
but In between they make per- 
fect reproductions of the 
genuine steamer chair. Find it 
at Steamer Furniture, The 
Forge, Wigmore, Leominster, 
Hereford!” r «» or at The Chelsea 
Gardener, Sidney St, London 
SW3. Prices are £149.95 for the 
chair and £64.90 for the foot- 
stool. 

Finally, if it is not so much 
furniture that you think your 


garden needs as something a 
little more special — maybe a 
sundial or a pair of ornamental 
gates, a coat of arms or a 
weatbervane, a pedestal or 
gazebo, then you should try 
Brookbrae at 53 St Leonard's 
Road, London SW14 (tel. 01*576 
4370. Besides a ready selec- 
tion of products off the show- 
room floor, Brookbrae has 
access to craftsmen who will 
make to order anything from 
a giant lion to a pair of swans. 


I WILL never agree with these 
people who think that garden- 
ing is a relaxation, an escape 
from the turmoil of business 
life, a symptom, even, of the 
British Disease. Such people, I 
suspect, have never tried to 
make a new garden. 

Hie enterprise calls for a 
very strong hervie. Every time 
there comes the moment which 
entrepreneurial readers will 
recognise, the ' time when 
options have narrowed to one 
of two courses of actions and ■ 
when no decision is going to 
be ideal. Do . yon go ahead: if 
so, in which direction, or do 
you wait and (niss your last 
remaining compromise? 

By Easter, my gardening had 
reached such a. crisis. Perhaps 
you remember the predicament: 

I wished to. make avenues of 
trees in an area of rough gram, 
which would radiate outwards 
like the fingers of a hand or, in 
French gardeners’ language, 
like a goose-foot or pattte dtoie. 
Neither the weather, nor the 
soil, wished to help the enter- 
prise. The rain had washed out 
if arch, my usual time of action, 
and the soil had proved too 
shallow for my first plan — 
excavation by machine. 

Meanwhile, my chosen trees 
ind shrubs r were heeled in, 
bursting into growth, over 200 
>f them; and reaching the point 
vhen a move in dry weather 
mould be murderous. Would it 
lot be best to wait, lose some of 
he plants and take more time to 
nitwit the weeds, turf and soil ? 

A season dithering is a season 
ost: the ground bad to be 


Gardening: Robin Lane F ox cuts through a crisis 

Ground worked in a jiffy 


worked and there was only one 
way left out of the impasse. It 
would have to be rotavated. The 
-options narowed again:. there is 
only one type of machine which 
can cope with the Job. Useless 
to play around with the stan- 
dard British cultivator, whose 
spikes whirl hopefully on the 
front of tire chassis; it lacks the 
horsepower for a really heavy 
job. If you are cutting into turf, 
names like Merrytiller seem a 
hollow Joke. You need about 15 
horsepower, a machine with a 
truly deep cut, gears, and 
action at the back. 

At point the decision-tree 
forked into two. One side co- 
incided with my belief that-the 
Englishman’s garden may be the 
envy of the world, but the 
Englishman's heavy garden 
machinery is several furrows 
behind America's. In the'Ameri- 
can garden, rotavating is accep- 
ted practice, and one of the 
heaviest machines happened to 
be marketed by the brother of 
my American publisher: wonld I 
like to collect his machine from 
Herefordshire and run it down 
the avenues ? (Irrationally, I 
could not suppress another 
memory. Unsold books, a book- 



the 


seller once told me, are shred- 
ded Into little pieces and made 
into the jiffy-bags in which the 
next round of new books are 
sent out to reviewers. Now what 
would a publisher he wanting 
with a powerful rotavator ? 
Would I find it in a shed full of 
all my unsold copies, waiting to 


be chopped into packaging? 

Herefordshire, anyway, Is a 
long way from me. From 12 
years back, I remembered the 
creation of a rose-bed in a 
Gloucestershire reader's turf. 
A workman had done it for us 
in less than an hour with a 


huge British rotavator, 
Howard Super Gem. 

Such memories are best 
checked with my senior col- 
league: Arthur HeDyer. He, 
naturally, had owned one, and 
endorsed it as a beautiful 
machine. Nowadays, the 
Howard Super Gem has become 
the Doweswell Bulldog 650, 
made near Rugby. It costs at 
least £2,240, plus VAT. The 
answer, is to hire one. 

But if you try to hire one, 
the hirers fob you off with the 
under-powered six or nine 
horsepower version. The options 
narrowed again: I could only 
trace one in the Home Counties, 
owned by a landscape gar- 
dener who was willing, as a 
good sport, to hire it for a 
weekend. 

Mind you, you should hire 
it with a practiced driver. Even 
my practiced driver had a 
battle of wills with the thing 
when it first reached the start- 
ing-tape. 

All Hellyer’s memories were 
correct In only eight hours, 
we cut 10 beds, about 25 yards 
long, flanking five avenues. We 
broke the soil to a spade’s depth 
and minced the surface grass 


out of existence. Howard Gems 
were first made in Harleston 
Norfolk. The machine you need 
is the Super Gem. 

After three passes, Supers 
Gemming merely repeats itself. 
It leaves you with a broken, 
plan table tilth— -better than any- 
thing you could contrive over 
Easter by using a spade. Of 
course, it is not a weed-killer. 
The sunshine baa since killed 
the bits of grass left on the 
surface; others have been raked 
off, but I will have to combat 
the new growth with a gly- 
phosate compound, probably 
Tumbleweed. As it kills through 
the leaf, not the soil, it can be 
used among newly planted 
stock, if you are very carefuL 

Meanwhile, the goose’s foot 
is radiating outwards. It is a 
slightly flat foot, because it bas 
to be aligned with the garden’s 
main axis: from some angles, 
it looks an unsteady foot, as 
if it was the deatnstep of a 
goose whose “foie" had been 
given the cognac before, not 
after, it was made into pat£. 
I have opted for grass avenues 
up to five yards wide, flanked 
by beds about four feet 

across. 

They will house fastigiate 
trees, spaced at three metre 
Intervals, intend anted with 
dipped, scented shrubs. I am 
aiming for the effect yon can 
see in the prints of 17th century 
French garden-books, by Rlon- 
del, Mofiet and others. If Le 
Notre bad bad a Super-Gem, 
even Versailles might have 
been finished more quickly. 


SEN I was young I was 
nbarded at this time of the 
ir'wtth accumulated folk wis» 
n warning me - just - bow 
acherous spring weather 

id be. “Ne’er change a 
ut till May be out,” my 
fter would admonish' me. 
on't plant any summer bed- 
g until Oak Apple Day," the 
gardener would warn, 
ratch out for Buchan's third 
1 period,” my' more 
inti finally minded . elders 
ild say. That if my memory 
res me right fell between 
f 12 art 14 and, from the 
deneris standpoint was the 
rt damaging of . the several 
l spells which ameteorogolist 
led Buchan claimed to have 
etifled after dose study of 
rewrite... 

t usually coincided with the 
k of the apple blossom and 
; capable of d ecim a ti ng the 
p in all those places In which 
1 air wold' accumulate on & 
u windless night 
io doubt Buchan’s ' findings 
e long since been proved 
a adless; no one now r emem- 
i the day when King Charles 
in an oak tree and as for 
t nonsense about May being 
did the old fogeys mean the 
ith of May or the date when 
rthorn came into bloom? 


Treachery perfectly timed 


Never mind; the details may 
be confused but the message 
was plain enough and it is just 
as valid today as it was then. 
The point is that peculiar things 
can happen to surface tempera- 
tures when Bight skies are clear 
and there is no breeze to stir 
things up. Earth heat is lost at a 
groat rate. to the sky by radia- 
tion and tiie chilled air. sud- 
denly made heavier by its in- 
creased- density, commences to 
flow as- if it were a liquid, run- 
ning down all unobstructed 
shq>es and collecting in great 
unseen pools in the hollows. 

I have seen nettles turn 
black in a night in May and 
even the emergent leaves of oak 
trees wither. 

The subtlety of it aU is that 
It happens in. a few hours, 
usually the hours around d&wm 
Anrf it- always occurs when the 
weather seems perfect, the sky 
without a cloud, the leaves un- 
ruffled by even the lightest of 
breezes. By the time the 
dener is up, the damage 


been done and all trace of what 
caused it may have disappeared. 
An hour or so earlier the frost 
lay white on the grass, and some 
may still remain in shady 
places, but it only takes a little 
sunshine to dispel it 

The * damage that spring 
radiation frosts can cause . 
varies. At one extreme is the 
blackened eye of fruit blossom 
which can pass unnoticed unless 
one looks closely for it but 
which spells the complete 
destruction of that flower so 
far as fruit formation is con- 
cerned. At .the other end of 
the ■ scale are the withered 
leaves of tender plants which 
look as if a flame had played 
upon, them, a condition so con- 
fusingly described as “burned 
by frost” 

Unfortunately a great many 
people are unaware of this and 
are convinced that some plague 
has descended on their gar- 
dens; maybe a mysterious 
disease or an onslaught by 
Insects that disappeared -as 
rapidly as they arrived. At this 
time of the year garden experts 



are inundated with samples of 
destruction due to nothing more 
complex than cold. 

‘What can be done about it? 
First and foremost do not plant 
out anything that is at all tender 
until the end of May unless 
you live by the sea or in some 
similarly favoured place. Let 
all those tempting geraniums, 
begonias, petunias and lobelias 
lie in the shops to be bought 
by less prudent customers. 

Not all the plants now so 
seductively displayed are at 


risk from radiation frost. 
Pansies and violas should be 
entirely sate wniftna rendered 
artificially tender by being 
rushed along in high tempera- 
tures. Antirrhinums can stand 
a little cold and so can pen- 
stemons and marguerites. It 
used to be an essential part 
of nursery practice to harden 
off all such plants for several 
weeks before offering them for 
sale, but I doubt whether any 
of the big commercial pro- 
ducers now have either the 
labour or the space to cope 
with all that extra handling. 
You would be most likely to 
find it happening in a little 
local nursery which grows all 
its own plants. 

Fruit blossom presents totally 
different problem. Strawberries 
can be covered with polythene 
weighed down around the edges 
with son or stones. Anyone 
arriving in Jersey by air this 
past two months might have 
supposed that large areas of 
the island had suddenly been 
covered with glass. It is, in fact, 


nothing more than huge sheets 
of perforated polythene laid 
over the potato fields to protect 
the tender growth from frost 
and produce a crop those few 
days earlier that can make all 
the difference between a good 
and a mediocre price. 

Polythene can be useful over 
small bushes or draped on 
trained trees but impossible 
handling problems occur as the 
trees grow larger. For these 
there are really no solutions 
that are practicable for ordi 
nary gardeners, though fruit 
specialists may go in for power- 
ful water sprinkling or huge 
air fans to stir up the air and 
so prevent its accumulation in 
pockets. Water spray as a frost 
cure seems particularly per- 
verse to us humans, ever ready 
to equate our own requirements 
with those of plants. 

It would kill us to be sprayed 
with cold water while everything 
around us was freezing, but for 
plants it can malm just the 
difference between life and 
death even if the water actually 
freezes on the blossom since, in 
the act of doing so, it releases 
latent heat which, for the short 
duration of the radiation frost, 
can prove crucial. 


Arthur Hellyer 


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XX WEEKEND FT 


Unancial Times Saturday May 9 10ST 


ARTS 


Lorca’s Yerma is in London and Dublin, a Cuban play atTthe RSC 



moral hypocrisy 


AFTER LAST year’s 50th 
anniversary of Lorca's death, 
another major European 
■writer is released from copy- 
right restrictions. The pick- 
ings are rich already. Robert 
David MacDonald’s triumphant 
version of The House of 
Bernards Albc concludes its 
West End run on May 30 
having collected a battery of 
awards and recouped its initial 
investment in under six weeks. 

The great poetic folk drama 
Vcraia is best remembered 
here in Victor Garcia’s trampo- 
line production with Nuria 
Espert savagely erotic and 
despairing — in spite of all that 
bouncing about — as the barren 
heroine. Now English and Irish 
audiences can see Yerma full 
and unimpeded by a stunning 
design metaphor, which remark 
is intentionally double-edged. 

The National Theatre's 
Yerma in Peter Luke's pains- 
takingly faithful translation 
opened in March and continues 
in repertory. The Ab'oey 

Tfceatre in Dublin introduced 
us to Frank McGuin ness’s new 
version in the Peacock audi- 
torium on Tuesday night and 
related the piece, no question, 
to a local peasant drama 
tradition. Gone are the 
Andalusian metaphors of 
useless thistles and the 
parched plain where 2 thousand 
pair of oxen plough; instead. 
McGuLnness's Yerma is a 
refugee from the Yeatsian well 
of the saints, a bursting reposi- 
tory of untapped milk who 
could even end up believing 
that she has become her own 
son. ^ 

This extraordinary Catholic 
image, with its echoes of God 


the Father transmuting into 
his own Son. is posited by 
McGuinness in startling con- 
trast to the secular reality of 
Yerma's physical condition. 
Catherine Byrne, in a perform- 
ance more notable for its 
bravery than its emotional 
power, tells the third act 
sorceress that she is a bitch 
on heat who wants to be a 
bitch on fire. And how many 
Irish mothers over the cen- 
turies, I wonder, have 
terrorised their childless 
daughters with the conven- 
tional wisdom that if a woman 
wants to have children enough, 
she will have them. 

The religious superstition 
that inflamed Lorca's art is 
still up and running in 
Catholic Ireland. The director 
Michael Attenborough lays out 
the action on a bare grey 
square and makes only one 
serious error of judgement. 
This is the presentation of the 
fertility masque as a spare 
item in a Paul Taylor dance 
programme, an overtly erotic 
pas de deux executed by a 
lithe couple in fright wigs and 
body stockings. I do not 
request an Irish jig. but this 
sequence is at fearful odds 
with the rest of the evening. 

The Abbey does not so much 
produce the play as serve it up 
raw. and once a little more in- 
tensity is injected into both 
Eosco Hogan’s broodily uncom- 
prehending husband, Juan, and 
Maurice O'Don oghue's blandly 
unassertive Victor, the show will 
pick up the momentum it lacked 
on Tuesday night. 

Meanwhile. Di Trevis’s NT 
production has obviously picked 
up the steam it seeded after 


some unenthusiastic notices, in- 
cluding Claire Armitstead's on 
this page. The idea here is to 
recreate the . Spanish environ- 
ment and wrestle with the pecu- 
liar — to a modern pagan audi- 
ence — Idea of parturition as 
a plank in a policy for women's 
liberation. 

Juliet Stevenson redefines 
these emotional and intellectual 
imperatives with great gusto, 
suggesting that the indifferent 
quality of her sex life with Juan 
is the problem. But Miss 
Stevenson goes on from there 
to imply that the biological func- 
tions in general have induced 
in Yerma a severe psychological 
crisis. Roger Lloyd Pack's lugu- 
brious Juan is a man bowed 
with work and beset by his 
spinsterish sisters. Yerma wants 
hjm too much. Whereas in 
Dublin Miss Byrne merely 
embraces Juan in the great 
second act climax. Miss Steven- 
son rushes at Mr Lloyd Pack, 
who has just accused her of 
being a whore, with a gale force 
of generous, unreciprocated 
abandon. 

If Dublin offers a contem- 
porary dance programme in the 
hills, the NT reverts to cultural 
tourism and mounts a splendid 
homage to Antonio Gades and 
his flamenco troupe who made 
that wonderful film version of 
Lorca’s Blood Wedding, not to 
mention the dance Carmen. But 
it comes off very well, not least 
because one of the production’s 
strongest features, the music of 
Dominic Muldowney, Is sheer 
Hispanic pleasure. The scene 
makes the dramatic point of 
Yerma's isolation from the fiesta 
of song and procreation and 
Miss Stevenson builds from here 


to a dark and tremendous 
climax, the murder of her 
husband/son an act of orgiastic 
release. 

The Dublin sparseness is a 
far cry from the NT's splendid 
design (by Pamela Howard) of 
the Cottesloe auditorium re- 
vamped as a corrida hung 
about with endless rows of 
white sheets, a comment on 
both the ecstatically vigorous 
washerwoman's chorus led by 
the admirable Jenny Galloway 
and the notion of public dis- 
play of bed clothes after the 
consummation of marriage. The 
blood we see, though, is not 
caused by the rupturing of an 
hymen, but in an astounding 
moment when Miss Stevenson, 
like a grotesque inverted 
parody of Lady Macbeth, 
bathes her hands in her own 
menstrual blood. 

Frank McGuinn ess’s Tuesday 
Lorca was followed by his 
Wednesday Ibsen on the Sooth 
B ank, Roger Lloyd Pack play- 
ing another haunted, cada- 
verous husband, John Rosmer. 
Rosmersholm is a chill Protes- 
tant sequel to the world of 
Lorca, where instinct and pas- 
sion are under threat hut not 
forgotten. Both translations are 
exceedingly fine, and I have 
no doubt that they mark an 
important addition to the 
already impressive body of 
work — notably Observe the 
Sons of Ulster Marching To- 
wards the Somme — from the 
playwright who is at the centre 
of the Irish theatrical renais- 
sance, and probably its most 
important discovery since 
Brian FrieL 

Michael Coveney 



Wuttfr Mti* 

Catherine Byrne as Yerma in Dublin, Joliet Stevenson in London and Janet McTeer In “ Worlds Apart 

OM HAS three boots in is drawn irresistibly towards Janet McTeer is not among Alicia, an "JjJ 

heatre passed so quickly hypocrisy and repression — of them. Her performance as withers before our ^es, a a 

these three in the RSCs women by men, blades by Victoria was hailed by Mi ch ael Valene Cogan as their mild 

ran Pit aiMitnrinm This whites, hut also crnciallv. of Covenev on this nasre as one hood friend. 


SELDOM HAS three hours in 
the theatre passed so quickly 
as do these three in the RSCs 
Barbican Pit auditorium. This 
sprawling, imperfect slice of 
Cuban life follows the fortunes 
of a one-time land-owning 
family through SO years around 
the turn of the century when 
the shackles of Spanish colon- 
ialism were being cast aside 
and the mantle of US self- 
interest assumed in its Place. 

Written in 1979 by Cuban 
exile Jose Triana partly in 
Havana and partly in Paris, 
Worlds Apart follows Lorca's 
example in taking the family 
as a metaphor for the state and 
society; like Lorca too the focus 


is drawn irresistibly towards 
hypocrisy and repression — of 
women by men, blacks by 
whites, but also, crucially, of 
daughters by mothers. It is a 
society where the men pick up 
syphilis in downtown brothels 
while their wives doggedly up- 
hold the dignity of u mujeres 
honradas ”, where a feverish 
bacchanalian lust strains at the 
corsets of propriety. 

This adaptation by Peter 
Whelan from Kate Littlewood's 
translation was premiered last 
September at The Other Place 
in Stratford, whence it trans- 
fers to The Pit with four 
changes In cast Fortunately 
for the BSCs London following 


Janet McTeer is not among 
them. Her performance as 
Victoria was hailed by M i ch ael 
Coveney on this page as one 
of the unforgettable highlights 
of the last Stratford season, and 
It is here undlmmed. 

Simultaneously passionate 
and fastidious, burgeoning 
fawn wide-eyed childhood to 
illicitly enjoyed sexuality and 
Anvil y submitting to domes- 
ticity with her honest, if 
uninspiring husband (David 
Haig), McTeer gives an utterly 
compelling account of Latin 
American womanhood, and is 
nicely complemented by two o£ 
the newcomers: Anna Patrick 
as her long-suffering sister, 


Nick Hamm's direction, on a 
balqonled set by Chris Dyer, 
captures the heartbeat of a 
society Imprisoned by physical 
heat and moral dust, la which 
evcv Darlene Johnson's stern 
mother. Carmen, cannot resist 
a swivel of the hips to the 
newly arrived gramophone. It 
is a credit to all that the 
fissured surface of the play 
holds together as well as it 
does. 

Claire Armitstead 


Gounod: Faust. Francisco 

Araiza, Kiri Te Kanawa, 
Yevgeny Nesterenko, Andreas 
Schmidt, Pamela Coburn, 
Marjana Lipovsek, Gilles 
Cachemaille/Chorus and orch. 
of Bavarian Radio/Colin 
Davis. Philips 420 164-2 
(three CDs), also record and 
cassette. 

Strauss: Ariadne auf Naxos. 
Anna Tomowa - Sintow, 
Kathleen Battle, Agnes 
Baltsa, Gary Lakes, Hermann 
Prey, Urban Malmberg etc./ 
Vienna Phllharmonic/James 
Levine. DG 419 225-2 (two 
CDs), also record and 
cassette. 

Johann Strauss: Die Fleder- 


Records 


Mixed bag of 
favourites 


mans. Lucia Popp, Eva Lind, 
Agnes Baltsa, Peter Seiffert, 
Placido Domingo. Wolfgang 
Brendel etc/Chorus and orch 
of Bavarian Radio/Placido 


(two CDs), also record and 
cassette. 

• The disappointment that the 
new recording of Gounod’s 


ST.JAMES’S 

8 King Street, London SWL Tel: 01-839 9060 
Wednesday 13 May at 10.30 aan. 

VALUABLE PRINTED BOOKS 
Thurs day 14 May at 10.00 am. 

THE NINETEENTH CENTURY, EUROPEAN CERAMICS, 
FURNITURE, SCULPTURE AND WORKS OF ART 
Friday 15 May at 11.00 am 
FINE VICTORIAN PICTURES 

SCOTLAND 

164/166 Bath Road, Glasgow. Kb (041) 332 8134 17 

Sale on the Premises 

AUGHX CASTLE 
Brough, Cambria 

The Properrv of Michael Hogarth and 
Miss Barbara Ann Bides 

Monday 11 May at 11.00 am and 2.00 pm 
English and Continental Furniture, Ceramics, English 
and Continental Pictures, Drawings and Prints, 
Objects of Art, and Domestic Furnishings. 

Christie's Sooth Kensington is open fir: viewing on Mondays 
until 7 pm For farther information on the 12 sales this week, 
please telephone 01-581 7611 

Christie's have 25 local offices in the UK. 

If you would like to know the name of your nearest 
representative please telephone 01-588 4424. 



Annual Exhibition of 
English 

Watercolour Drawings. 
Opening Monday May 11th, 
until May 29 th. 
Monday- Friday 9.30-5.30. 
Illustrated catalogue, £2. 

Spink & San Ltd. 

King St., Sijunes'i, London 5WL 
Tel: 01-930 7888 (2«hn) 
Telex: 916711 
Established 1666 


GALER1E SCHMIT 

396, rue Sunt-Honore 75001 PARIS - (331) 42.60.36.36 

MAITRES FRANCAIS 

XIX e - XX e SIECLES 

Exhibition : May 6 - July 18 

ALLANS HAND EMBROIDERED SILK PARKIN GALLERY. II. MoKD 

PICTURES. Now not cniy in Chln-ue CHLLSEA. Whlstsor. Cmm. Burt 
traditional Out In <ommiuioiwd ociIBni rn 
IniDlroo by tne impress lonlus In Crosv- 
ssitth technique — Do cell and see ttam 
and the Incredible doubio-sidod Iw-'l 
omoreiaereu oi-iui cacn an its own 
hand carved cherry wood Ire* standing 

frame. Lower Ground Flow of Allen* 

Famous SHk Shoo. S6-S8. DuJw Strmrt. 

Grpmnor Souare. London WJM 6H5. WILKINS WAIT*. RBA. 1854- 

g-3 Mon.-Fri.. s-i* sat. 1934. Exhibition May 7 -mjy 20. Paint- 

Inss of Surrey. Svsmk end Berkahlre. 
PARKER GALLERY. 1Za-12b. Borfcolov Burlington Paintings. . 1Z. Burlington 

r Street, London W1X SAD foppotife Garden,. London W1X 1LC. TOi 01- 

Nh*ali- Hotel). 01-499 5906. 734 99S4. 


Domingo. EMI CDS 7 47480 8 Foust arouses stems as much 

from what It isn't as what it is. 
„ , - A couple of years ago, English 
National Opera decided to 
■dh m 1 ct ” h »a revive the work in a form 

,r M 1 | | C 1 approaching the original one — 
fl B H 4 ie as an opdra-comique (with 

% fl |§ if speech and song in swift alter- 

& fl fl M j L / nation) rather than as the Grand 

r _ _ . _ Opera-with sung-red tatives that 

IHS S it later became. New light was 

„ shed. The old warehouse ceased 

L Ten 01-839 9060 t0 easy target of superior 

■at 1030 am scorn, and became— as it was 

TTTi RfinKS surely meant to — a first-rate 

fr operatic entertainment In a 

at 10.00 am light forward-moving setting. 

EUROPEAN CERAMICS, Gounod's indestructible melo- 

AND WORKS OF ART dies seemed all the more inti- 

,11*.- mate and caressing; and the 

a mr* rrninc overall unevenness, the banality 

V PICTURES 0 f u, e churchy Big Moments, 

was much counteracted. 

ANf) in a well-ordered world the 

' record companies would have 

r.lfeb (041) 332 8134/7 vied with each other to be the 

remiu*, first to set this version down 

renuses on disc. No such luck. The 

iSTLE text performance on Philips by 

mbria the Bavarians under Colin Davis 

ael Hogarth and is the staple “big-house" reedta- 

jm Bilks live Faust, plumped out with 

, onn the airs for Marguerite and 

am and 2.00 pm Siebei often cut, the Walpurgis- 

xture, C e ramics, En g lish nacht scene, and the ballet 

Drawings and Prints, music (offered separately at the 

lestic Furnishings. end). How ponderous and un- 

Idiomatic it now seems. 

en for viewing on Monday* That impression is, alas, 

m on the 12 sales this week, comprehensively fostered by 

01-581 7611 Si r Colin's conducting. Clearly, 

he loves the score. All too 
offices in the UK. clearly. For he lathers it, 

e name of your nearest recits. and all, in a surfeit of 

phone 01-588 4424. “ affection " in which it all hut 

unnan— | drowns. The basic tempo of 
— ——————— — — — most sceQes is achingly slow; 

Thom borough worse, hardly a phrase passes 

luwuuuruugu by wilhout being decked out 

Galleries in swoony rltardandos or 

28 Gloucester Street rubatos. , . 

Cirencester (028S) 2055 Whereas the classic (now 

Spring Exhibition 2-16 May defunct) French vocal style 
RARE ANTIQUE developed its impulses — and, 

EASTERN RUGS therefore, its adoption of 

lingering or forward-pressing 
expressive devices — from the 
■ ■■■ 1 sense and utterance of the text 

_ Itself, Sir Colin and his singers 

vIUDS appear to have “pre-packaged" 

the opera with almost no recog- 
Disable reference to or inspire- 

ve has outlived bio otters because of a ^On f™ m the Words WhUtSO- 
□oiicy or (air puy and value for money, even Tne performance lemoiy 
supper from io-3.3o am. diko and too lacks spontaneity; when one 

musicians, clamorous hostesses. asedBiw rbdrhoe this hriehf onnrlclv 

ikarsMws log. Resent sl, wi. Di-734 ™acnes tne Dngni; sparwy, 

0557. alert reading ox the nailer music 

at the end, one suddenly 
ci m recalls the sort of Berlioz con- 

ductor Sir Colin can be, and 

' one regrets all the more the 

h i — languor of his Gounod. 

It is little wonder the text 
T r 3 1 makes so little impact on the 

1 lvl_l_ X interpretation: with the small 

> a. ris . (3311 42.60 36 36 but valuable exception of the 

ARib - (o3i) 4 mou. 3 d. 3 o Swiss Gilles Cachemaille as 

_ * i -rry, Wagner no native francophone 

K A IVl A IS singers appear in the cast, and 

l uX LtV^ru.kJ the quality of French delivery 

cnrrr Tr>2 ranges from the only-just- 

JJXi U li£ n j tolerable to the gruesome. Of 

e the latter Yevgeny Nesterenko’s 
v fi - Trilv 18 I Mephistopheles is the supreme 

I u J I sj example (to hear him mangle 

— a throwaway line like “Daignez 
krkin gallery, it. MoKooib st» m’attendre icl" has its own 

At least the Russian bass 
brings vitality, however obvious 
and hammy, to the part, which 
cannot be claimed for Kiri Te 
|“«rd wiikins waite. rba. 1854- Kanawa's downy Marguerite 
BT-jer t&STSl &K (tajely. phrases, lack Of Clarity 

Burlington Paintinox. 1Z. Burlington and Simplicity) Or FranciSCO 

G ‘ Araiza's styleless, characterless 


Clubs 


eve Ivii outlived Bio otters because of a 
do! ley or (air pUy and value for money. 
Supper from 10-3.30 am. Disco and too 
musicians, glamorous hostesses. agedBnfl 
noorstiews. 189, Resent SL, WI. 01-734 
0557, 



Faust (with only a few gentle 
half-voice phrases to his credit). 
I like Pamela Coburn's Siebei; 
Andreas Schmidt’s Lieder-hari- 
tone approach to Valentin is 
cultivated but inappropriate. Is 
all this too harsh? Maybe: but 
having only recently hewn 
taught just how much rife 
eternal favourite has to offer, 
I find the Philips encourage- 
ment to backsliding in these 
matters thoroughly unwelcome. 

By happy contrast, the first 
Ariadne to reach compact disc 
format is a cogent, professional, 
well-rounded piece of work. The 
besetting sin in this opera is, 
again, con amore slowness. By 
comparison with such master 
Ariadne conductors of the past 
as Kempe or Bfihm, James 
Levine may err in this direction 
— the Opera takes time to get 
going— -but for the most part 
the problem is firmly contained. 
The special lustre of the Vienna 
Philharmonic In this opera is. 
as ever, nonpareil; one would 
find it hard to believe, from 
Levine’s just Wend of forces, 
how tea-shoppy Strauss’s 'cham- 
ber scoring can sound. 

The roll-call of cast names 
promises a fraction more than 
the singers themselves supply. 
Londoners know Tomowa-Sin- 
tow’s lambent, womanly Ari- 
adne, particularly melting in 
“ Ein SchOnes war," and Battle’s 
pert Zerbinetta; I don't feel 
that either was caught in 
fresh, easiest voice. Baltsa’s 
Composer flashes with spirit 
and pungency, but the climactic 
radiance is edged with strain. 
The new American Helden- 
tenor-elect, Gary Lakes, has the 
voice for Bacchus; closer atten- 
tion to dynamic markings and 
a more certain command of 
German vowels will help fulfil 
the great promise. Among the 
small parts Prey (a famous 
Harlequin now matured into a 
wonderfully gentle Music 
Master), Otto Schenk’s lazily 
dismissive Major-domo and the 
three well-blending nymphs 
(Barbara Bonney, Dawn Up- 
shaw, Helga MUller Molinari) 
give great pleasure. 

The conducting sideline of 
Placido Domingo risks the 
automatic disapproval of 
serious-minded folk (“Why 
doesn’t he stick to what he 
does best!”). I approached the 
EMI Fledernuius determined to 
resist stuffiness of any kind; a 
lively account of the work is 
welcome from whatever 
quarter, and a tenor who spent 
his formative years in a tour- 
ing operetta company may well 
have gained some close insights 
into its mechanics. Snch an 
open-minded spirit doesn’t en- 
tirely survive the listening. 
Domingo gets brisk, well- 
drilled playing but, in the pro- 
cess, misses most of the fun. 
That flick-of-the-wrist suavily, 
that art of making an infinitely 
smooth transition between sec- 
tions (in, for example, the 
“Dieser Anstand" duet) by 
which Strauss’s excellent musi- 
cal wit is best demonstrated 
largely passes him by. 

Without a velvet-glove lead 
from the conductor the 
patchiness of the performance 
shows through. There is an 
unaccountably weak Adele, and, 
from Wolfgang Brendel. an 
only so-so Falke; Domingo's 
Alfred (did he track it all in?) 
is warm but generalised, and 
much the same can be said for 
Lucia Popp as Rosallnde 
(rather chary with top notes 
in the closing bars of the 
Gsardas). But young Peter 
Seiffert (Eisensteln, and Mr 
Popp offstage) is a find; and 
Baltsa's Orlofsky inimitably 
Greco-Slavonic and dashing. 
There is a medley of star turns 
in Act 2 (including a sump- 
tuous Gypsy Baron duet from 
Popp and Seiffert) — quite 
pleasant, for those who don't 
mind the temporary dis- 
appearance of the plot 

Max Loppert 


Scotch froth 


For Glasgow the cloudless 
sky has been a pugnacious blue, 
for Edinburgh a genteel azure. 
The bright northern evenings 
(we emerged from the Citizens' 
Theatre into the Still light 
Gorbals) are perhaps not ideal 
for luring theatregoers to the 
play, but among the host of pro- 
ductions for Glasgow's Mayfest 
a revival of Robert McLelsh’s 
The Gorbals Story is one of the 
safest bets; while in Edinburgh 
the Traverse, fresh from finan- 
cial crises, pursues its crusade 
for new writing just off the 
cobbled Grassmarket where once 
they burnt heretics, thus con- 
tinuing the Scots tradition of 
combining instruction with 
entertainment. 

Gorbals-bom McLeish -was the 
archetypal working-class auto* 
didact Work with Glasgow 
Unity Theatre led to playwrit- 
ing. The Gorbals Story ; pro- 
duced in 1946, was his greatest 
success, touring as far afield 
as England and Wales. Sur- 
prisingly, the current produc- 
tion at the Citizens' Theatre is 
the first professional revival for 
36 years. 

Or perhs*'s not y in*nHc. 

ingly. This ' affectionate 
chronicle of a teeming tene- 
ment — Geoff Rose’s multi-level 
set with its staircases, jutting 
facades and interiors swarms 
with children playing, youths 
gambling, couples canoodling, 
busy housewives, pipe-smoking 
husbands, policeman and priest 
•—lacks dramatic tightness and 
narrative urgency. The reason 
lies in that insidious medical 
condition that has laid low 

WITH A trail of ecstatic 
reviews following it across the 
UK, the English Shakespeare 
Company is concluding its first 
season on the road with a trip 
to Toronto. While there its 
creators, actor Michael Pen- 
nington and director Michael 
Bogdanov, will hear their fate. 

The ESC was devised to bring 
Shakespeare to those cities, 
like Sunderland, Hull and 
Norwich, which have been 
starved of his works since the 
demise of the great touring 
companies. Three plays were 
performed, the two parts of 
Henry IV, and Henry V. On 
Saturdays all three were 
presented in one day. 

The money for the venture. 
£360,000, was raised from the 
Arts Council (£100,000), from 
Ed Mirvish (£125,000), who got 
productions — at his London 
theatre, the Old Vic, and the 
Royal Alexandra in Toronto — 

IN ADAPTING B. S. Johnson’s 
story Christie Malty's Own 
Double Entry (Radio 3, Tues- 
day), Mike Gerrard has retained 
the author as a live character, 
interrupting now and then to 
explain why the story is going 
the way it is. You can hardly 
reproduce on the air the typo- 
graphical effects that Johnson 
went in for, but at least this 
makes the right point, that 
you should not expect an 
uninterrupted, straightforward 
narrative. 

Christie Hairy began work in 
a bank at 17, but was dissatis- 
fied with the conditions and 
moved next year to a commer- 
cial firm as an invoice clerk. 
By now he was dissatisfied with 


more theatrical slum-dwellers 
than typhus, cholera and TB 
combined: the heart of gold. 

The writing is so concerned 
with the solidarity of hardship, 
the warmth of the community, 
that it embeds the characters 

in a honey-glaze of lovableness. 
David Hayman’s direction in- 
jects some tough physical busi- 
ness of its own: Act 2 opens 
with a fight as participants 
bound through the auditorium 
to join the near-riot on stage. 

Otherwise the dightly 
amhiing piece reflects the hopes 
and euphoria of 1946. A local 
girl marries an Indian amiable 
Ahmed, who politely murmurs, 
41 Happy New Year " when con- 
gratulated on his engagement) 
with cheerfully friendly refe- 
rences to “ darkles " the only 
hint of racial sensitivity. Ten- 
sion is constantly avoided. 
Violence nearly erupts between 
a fierce Irish patriarch (Alexan- 
der Morton, last year’s excel- 
lent Robbie Burns) and the boy 
sweet on his daughter, but they 
shake hands. The boy has a fling 
with an older neighbour when 
drunk; .but the episode is 
promptly forgotten. 

Vignettes are touching — the 
young couple, she recovering 
from a miscarriage, desperately 
seeking a floor, to sleep on — - or 
funny, as with work-shy Willie 
who even forgets to post his 
winning football coupon, played 
by Tom Watson, tiie Scottish 
theatre's best-loved reprobate. 
But despite slices of self- 
concious social comment, the 
play remains a series of 
sketches. 



David Gant and Roger Hyams In “Abel Barebone 
and tiie Humble Company Against the Great 
Mortality ” at the Traverse Theatre, Edinburgh 


The fine production is 
brought to Glasgow by the Inur- 
ing company 7:84. The 'Scot- 
tish People's Theatre” is well 
versed in the three Rs of popu- 
list drama -— roots, relevance 
and xaHyingeries; all much 
needed in areas seemingly 
neglected by central govern- 
ment in recent^years. 

The Traverse has its duties 
too, chiefly the championship of 
young playwrights. The latest 
is Peter Jukes. His new play, 
Abel Barebtme and the Humble 
Company Against the Great 
Mortality, has a familiar ring. 
The historical setting; wbat- 
tbe-hell anachmnTBnifl, under- 
graduate satire and achingly 
portentous symbolism amount 
to a thin, facetious gruel from 
the same under-nourishing In- 
gredients of. John Clifford’s 
Losing Venice, another recent 
Traverse comic epic. 

Set in plague-ravaged 1350, 
this Is a cress between The 
Seventh Seal and The Wizard of 


Hard up Bard 


in return for his support the 
Plymouth Theatre Royal 
(£35,000) and from the Govern- 
ment’s topping up scheme for 
enterprising arts ventures 
(£25,000). And there was a 
corporate sponsor— the Allied 
Irish Bank, which commifted 
£75,000, its entire promotional 
budget to the tour. 

Operating on guarantees at 
most theatres the ESC finished 
its British leg with a small 
deficit — In a few cities (Sunder- 
land) it had to share the box 
office returns, which were not 
good. But to go back on the 
road next autumn with an 
enhanced repertoire — Bogdanov 
and Pennington want to add 


Richard H, Henry VI (an three 
parts) and Richard D3 to the 
bfil for a complete ran of the 
history plays — the company 
needs £650,000. Hence the 
nail-biting; 

Most of the original backers 
will rally round. The Arts 
Council is -delighted to get a 
touring Shakespeare company 
so cheaply, and the Mirvish es 
are happy. Plymouth will again 
provide the first leg of an 
extended . tour. The Allied 
Irish Bank is now deciding 
whether to continue with its 
support It is a gamble for the 
Bank. By the time entertain- 
ment and - extra expenses, are 
added in the cost is nearer 


Radio 


Comic capers 


invention, until they reach the 
inevitable point where Malry*s 
death (from cancer, not com- 
mon in comedy) leads to the 
final checking of his account. 

Here, for me, the comedy 
collapsed, for you cannot equate 
a death with a sum of money, 
as this play did. 'The books 
were dosed, there was nothing 
owing to anyone. But there had 
been plenty of comedy on the 


Christie, Sonia Fraser as bis 
mother and Karen McMullen as 
his girl friend (known as The 
Shrike). The colourful direction 
was by Jane Morgan. 

Comedy can take many 
unexpected, shapes. The Cam- 
bridge Buskers, who gave us 
15. minutes on Radio 3 on Wed- 
nesday, play classical music on 
Also, 


Oz. Irish-accented Abel (yes. 
Adam's son) leads a crusade 
against death, seeking the im- 
mortality of l e g e nd, accom- 
panied by Jeck Starkie who is in 
search of conviction, Cotin who 
wants to find the secret of give- 
and-take, and a Friar who has 
lost his voice. They encounter 
a rogue knight, a merchant and 
Death with a Brummie accent, 
cockney soldiers defending a 
fortress of grain that in turn 
surrounds piles of tombstones 
and sundry other figures of 
threadbare banality in adven- 
tures of turgid and intermin- 
able predictability. 

Of course young writers must 
cut their teeth; but the Tra- 
verse, with its economic 
struggles and consequent 
accountability as regards stan- 
dards, is ill-advised to stage 
these rites of professional pas- 
sage. Stephen Unwin directs 
straightforwardly and a loyal 
cast pulls together. 

Martin Hoyle 

£150,000. But it has been able 
to make a noise in cities where 
it had branches and to intro- 
duce itself in new areas. The 
UK now provides over a 
quarter of its turnover. The 
will is there, only the way tian 
to be found. 

Even with the Bank the 
ESC will still be short of cash, 
but with its reviews to dazzle 
potential supporters the com- 
pany should survive. Its last 
night at the Old Vic on Satur- 
day was reminiscent of the 
RSC in its Nicholas Nicfclebg 
days, with hurrahs from that 
bulk of the audience that had 
spent the day with Henry of 
. Monmouth. la the extended 
cycle eight plays will be pre- 
sented over a weekend. History 
is in the making here and 
that should be enough to open 
the ^offers. 

Antony Thorucroft 

bridge Buskers played like 
Trojans. 

Last Saturday Radio 4 gave 
us a feature about Michael 
Beaumont, Seigneur of Sark, 
grandson of the illustrious 
Dame Sybil Hathaway. It was 
interesting to hear how Mr 
Beaumont has settled down to 
S®- Y 1 - 81 *** f rom aircraft de- 
sign in Bristol to becoming a 
modest ruler in his historic 
Seigneurle, but a good deal of 
the programme was givien over 
to guide-book information 
about Sark that is fairly well 
Known. Derek Jones might 
have taken his interview a little 

further. I wanted — ' — 

to know how the at 





I’Mjlir 


> 








increased pressure from the 


damage to the building. Varia- other issues, and I suspect that Frankie Howerd told us. in an 
tions on tfos joke are the main- I shall find the book much Interview wttTlWirt 


^ main- i shair find the book much interview with David Roper for Argentines and from the 

stay of the play. They continue, more fun than the play — Kaleidoscope, that United Nations, 

ui increasingly ^ destructive though I shall miss the able comedian^ greatest strength 

forms, with developing comic playing of Jonathan Taller as was* his weakness; but theCaS B. A- Ynum* 








Financial Times Saturday May 9 1987 


WEEKEND FT XXI 


WEEKEND FT REPORT* 





' Ll : 

' ir 

; '• * iS 


■ '■‘I'fi-.-. 
. - ' -I » 

- ^ 6 





GEORGIA, 



Georgia Is as much a part of the 
history and mythology of the US as 
the Wild West. Georgia is Scarlett 
O'Hara, Rhett Butler, Sherman’s 
march to the sea. King Cotton and 
Coca-Cola, Martin Luther King, civil 
rights battles and President Jimmy 
Carter; After the Carter presidency, 
tourism there took a dip, but in this 
three-page report, James Buchan 
looks at Georgia, 1987, and its drive 
to win more holidaymakers. 



y - nip.® ii fr 




new in the 
old South 



INTERSTATE 75 runs from the 
top of Georgia to the bottom. 
The highway begins in the 
Appalachian . . mountains,, 
crosses the rolling foothills 
known as the Piedmont, passes 
in view of Atlanta's saline, and . 
then -runs ouithrongh peach 
and peanut country to Florida. 

For many- travellers, bound 
for Disney World or Miami, in- - 
terstate 75 is Georgia It is not 
worth leaving the highway to . 
look around. Many Americans 
seem to have got a bellyfnll of 
Georgia, or at least, of Georgia ' 
myths daring the Carter pres- 
idency: fried chicken, bill' 
billies, racism and Billy .Car- 
ter's gas station. Jimmy Carter's - 
rejection in 1881 was one of the 
most -drastta ever delivered an 
incumbent president. 

Yet Georgia, the largest state 
east of the Mississippi, is also 
one of 'the most interesting. 16 
diversity is extraordinary. The 
north-eastern mountains, with 


their dense woods of oak and 
hickory and their cold trout 
streams, seem half a continent 
away from the vast and intrt- 
going Okefenokee Swamp in the 
south-east Savannah, one of the 
most beautifhl towns in the 
world, seems just as tar from 
Plains, Jimmy Carter's home 
town. 

Georgia's history is just as tar- 
flung, at least by North Amer- 
ican standards. Founded as a 
colony in -1733, the last and 
poorest of England's colonial 
American adventures, Georgia 
was the scene of the shaping 
events of modern American his- 
tory: tte battle tor independ- 
ence, the experience of slavery, 
the civil war and, finally, the 
straggle for black civil rights 
under Martin Luther King. 

Georgia suffered, in the sum- 
mer and autumn of 1864, one of 
the most vicious and bloody 
campaigns in a bloody civil war. 
Yet a great deal is preserved. 


Relics from the colonial era are 
all over Savannah and the is- 
lands. The middle of the state, 
from Augusta to Macon, is lit- 
tered with mementoes of the 
plantation era and its disas- 
trous end in war and depress- 
ion. On 'Auburn Avenue tn 
Atlanta, stands King's House, 
comfortable, respectable and 
clean as a church. 

Georgia's people are just as 
diverse. The traditional social 
structure had not entirely 
vanished: poor whites, fun- 
damentalist and anti-integra- 
tion. the richer whites of Atlan- 
ta and the cities and the blacks 
themselves. In the rural coun- 
ties of the mountains, there are 
pockets of hillbilly culture in 
spite of the invasion of resorts 
and second homes. 

Baptist churches almost out- 
number Cast-food joints. “ Flee 
temptation and don’t leave a 
forwarding address,” one sign 


exhorts the traveller. In Forsyth 
County, blacks were driven out 
before the Great War and have 
not been allowed back. In Ken- 
nesaw, just north of Atlanta, 
possession of a gun is compul- 
sory. 

In contrast, Atlanta, oneof the 
most dynamic cities in the 
south, is predominantly gov- 
erned by blacks who have inher- 
ited a portion of King's moral 
authoritv. The government of 
Mayor Andrew Young, once Jim- 
my Carter's United Nations 
Ambassador, would be con- 
sidered liberal in the special, 
usually disapproving, American 
sense. Bnt his administration 
depends for support on the co- 
operation of the white business 
c ommunit y. 

For those people not content 
just to look at things, there is 
quite a lot to do. Two of the sea 
islands, St Simons and Jekyll, 
have been developed as social 


resorts. Georgia claims to have 
some of the finest golf courses 
in the world, though a non-mem- 
ber will find heaven easier to 
enter than the Augusta National 
during the Masters Tournament 
The mountains in the north 
offer riding, fishing, river- 
rafUng, even bear hunting; 
while there are wildlife pre- 
serves on the coast and in the 
Okefenokee Swamp. 

Tourism in Georgia took a dip 
with the end of the Carter pres- 
idency, but the state still claims 
over 20m visitors a year who 
spend more than $9bn. But 
many of these travellers are. 
passing through to Florida, or 
attending conventions, and the 
Georgia Department of Industry 
and Trade wants to attract 12m 
new tourists over the next five 
years. This involves spending 
£4m a year by the end of the five 
years on advertising, marketing 
in Europe and Japan, and train- 


ing for people working with 
tourists. 

The potential for attracting 
overseas tourists has only in- 
creased with the fall in the dol- 
lar exchange rate. Georgia is 
fortunate in Atlanta's 
Hartsfield Airport, which runs 
direct flights to Europe and, re- 
cently, Japan. The airport 
claims to be the busiest in the 
world in terms of the number of 
aircraft arriving and leaving: 
3 ,000 a day. it is said. The air- 
port opened in its present form 
only in 1980 and delays are fre- 
quent; but it is incomparably 
preferable to Kennedy Airport 
in New York. 

Georgia’s hotels are also 
much better than the run of the 
southern US. As a highly 
successful convention city, 
Atlanta has truly spectacular 
hotels, designed by the local 
architect and developer John 
Poitman. These hotels, such as 


the Hyatt Regency and the Mar- 
riott Marquis, are expensive 
.and fUn: their flamboyance, and 
cloying hospitality, are satirised 
in William Boyd's comic novel, 
K Stars and Bars, which is now 
being filmed in Georgia. 

Outside Atlanta, the choice is 
varied. There are motels. There 
are always motels. In Savannah 
and other large towns, there are 
the usual large-chain hotels. On 
St Simons and Jekyll Islands, 
there are resort hotels. On Sea 
Island is The Cloister, a 
magnificent survivor of an age 
when Yankees Docked down to 
Georgia to escape the northern 
winter and enjoy a new craze 
called golf. 

In several towns, old houses 
have been converted into bed- 
and-breakfast inns. These inns, 
such as the Foley House in 
Savannah, the Telfair Inn in Au- 
gusta and the Stovall House 
near Clarkesville. are bed-and- 


breakfast in the elaborate New 
England sense. For British visi- 
tors, bills of $100 or more will 
dispel any thoughts of the sea- 
front at Blackpool. The best way 
to travel, as everywhere in- 
America, is by hire-car. The 
alternative is the bus. 

The best time to visit Georgia 
is now. While summer tempera- 
tures reach extremes in the 
mid-90s Fahrenheit (mid-30s c 
Centigrade), which is not much 
hotter than New York City, the 
spring and autumn are far more 
attractive. Azaleas bloom in 
Savannah late March, about a 
month later at the Callaway Gar- 
dens and in May and June in the 
mountains. Dogwoods flower 
from about the middle of ApriL 
In autumn, the trees start tur- 
ning in the mountains in mid- 
September. Winters are brief on 
the islands, and warm enough 
for golf and tennis and wander- 
ing about 




...... C 




\.i 




began here. Among these cobbled 
streets and public squares. In the gabled row 
houses with steps scrubbed clean, their tiny 

iron.Amodei 

colony The last of the origjnaTthirteen. 

They call it the Colonial Coast-at one time the exclusive play- 
ground of the SuperRich, today pristine, undisturbed. Sanctuary 
to exotic plant and wildlife. And to the vacationer who seeks a bit 
of privacy with his sand and sea. 

So crane, meet us on the square. Vlfe’fl stroll beside the bay then 
set out along the highway Past the rice plantations and moss- 

there for a sun-drenched 
round of gplf. And somewhere on an island beach, we’ll catch the 
drift of the ocean’s song. V\feaving a silken memory to last your 
whole life long. 

Sendjaryourjmwocampkmni^k^, including a special section on ihe Gxzst. And why not 
do know. vMck^onycw maid? I cm mast interested in tfr: UCbast Q Mountains Q \tkmta 
□ Historic Heartland. 


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. t was the ultimate temple to the Silver 
Screen. And the city that had spent its Satur- 
day afternoons under that dome of twinkling 
stars refused to let it die Tbday, perfect acous- 
tics intact and Byzantine splendor restored. 
Fox again plays host to the grandest names 
rearer; and film. 

re of our Adanta-to hold with passion to the 
lg headlong into the future Graceful tum-of-the- 
loods ring a Downtown of grand hotels, office 
restaurants. You'll find theme parks, ball parks, 
e’s even a national park just a block from the 

► a visit. See who's playing at the Fox. Then 
red plush seat ana listen. Wre playing our 


’fat, including a special section on .Mkmta. ,\nd why net 

■mind? I am most interested in the QCoastUMoumainsUMlama 

GEORGIA 

oftimnmCK 

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,LF0& Adana. GA 30301. 

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XXII WEEKEND FT 


: y; ; 4 | ; ‘S : : 


Financial Times Saturd ay May 9 1987 


WEEKEN D FT REPORT* 


in the days when people 
travelled by railway, there used 
to be a joke about Atlanta. 
Whether you went to heaven or 
hell, the joke went, you had to 
pass through Atlanta. 

Things have not changed 
much. Anybody travelling in the 
southern US must eventually 
pass through Hartsfleld Inter- 
national Airport, which is 
either the busiest or next 
busiest airport in the world, 
depending on whether you are 
talking to an Atlantan or some- 
one from Chicago. Up to now, 
Atlanta has been satisfied with 
the pedple passing through and 
with a flourishing convention 
business. Now it wants tourists. 

At first sight, the place does 
not look very special. It looks 
like other southern towns, Mem- 
phis or Nashville, say. There is 
the same vast airport, the med- 
ley of freeways, a few skyscrap- 
ers downtown blighting the sur- 
rounding streets and suburbs 
stretching for ever. It is another 
American city uninterested in 
its past. 

Yet it does not take much ex- 
posure to Atlanta's relentless 
self-advertising to fall prey to 
the place. Atlanta is pushy. It 
□ever had Savannah's back- 
ward-looking gentry to gild its 
predatory instincts. The con- 
stant ebb and flow of people has 
rubbed away any remaining 
southern gentility. 

But it is Atlanta's very success 
that is appealing. It is one of the 
fasLest-growing and racially 
integrated cities in the US. It is 
the undisputed capital of the 
south-east. And with the Demo-* 

GEORGIA'S ATLANTIC coast is 
scarcely a hundred miles long 
but it is the jewel of the state. 
Stretching from Savanafa in the 
north to the little town of St 
Marys on the Florida border, it 
is a flat, wet country of un- 
spoiled marshland or rice and 
cotton plantations which have 
fallen out of cultivation. 

Strung along the coast are 
barrier islands, known as Geor- 
gia's Sea Islands or. sometimes, 
as the Golden Isles: Tybee, 
Ossabaw. St Catherine's. Sapelo 
and Blackbeard, St Simon's. Sea 
Island. Jekyll and Cumberland. 
But often it is impossible to 
know where mainland ends and 
island begins in the maze of', 
delta and sedge. 

Most of the northern islands, 
such as Ossabaw and St Cather- 
ine's. become unmanageable to 
their owners and are held by the 
stale as wildlife preserves. St 
Simon’s and Jekyll have been 
developed as beach and golfing 
resorts. Cumberland manages to 
be a bit of both: a national 
seashore run by the US Park 
Service, but open to the public, 
brought over by ferry from St 
Mary's on the mainland. Sapelo 
Island is also open to excur- 
sions. 

This division of use was never 
planned but it seems to work 
quite welL The modern resorts 


Why Atlanta is wooing tourists 


History and Coca-Cola 


crat Convention next year, 
Atlanta believes it can gain 
national prominence. 

Atlanta's success is all the 
more remarkable given its most 
unpromising origins. 

The town started life in 1837 
as Terminus, a railway town 
built by the Western and Atlan- 
tic Railroad in a forest clearing. 
It was the key distribution cen- 
tre for the Confederacy, moving 
arms and men back and forth 
from the fronts, caring for the 
wounded. Sherman ripped up 
the railway lines and burned 
the city to the ground. 

The wounded in Atlanta's 
squares, and the burning city, 
are familiar pictures, delivered 
ail over the world by the film 
Gone with the Wind, which was 
shown to the public for the first 
time in Atlanta in 1939. Modern 
Atlanta gives no hint of that era 
except, perhaps, in the Cyclor- 
ama, an immense, three- 
dimensional panorama painted 
by Polish and German artists in 
the 18805 and portraying the 
battle that sealed the fate of the 
city on July 32 1864. This eccen- 
tric object is a rare survivor of 
the sort of illusionary effect the 

have already taken on the some- 
what melancholy air of the 
plantation relics on which they 
are built The golf-carts chug- 
ging down the majestic avenue 
of evergreen oaks at the Retreat 
plantation on Sl Simon's are apt 
inheritors of a slave-owning 
society. 

Originally, the islands were 
forbidden slaves. Gen James 
Oglethorpe, who founded Eng- 
land's last American colony in 
1733 and chose to live in St 
Simon's, had outlawed slavery 
at the outseL (He also banned 
lawyers and, more con- 
troversially, rum.) His reasons 
were more practical than 
humanitarian, for he thought 
freemen would be better at de- 
fending the colony against the 
Spanish in Florida and was 
aware— long before his time— of 
the fatal tendency of the slave 
colony to destroy the free. At 
Frederica on St Simon's, where 
he built fortifications against 
the Spanish, Oglethorpe sur- 
rounded himself with fierce set- 
tlers from the Scottish High- 
lands, who had fled proscrip- 
tion after the 1715 Jacobite re- 
bellion and. opposed slavery. 
His secretary was Charles Wes- 
ley, one of the founders of 
Methodism and composer of re- 
ligious music. 

Nobody would nowadavs eo to 


Victorians loved before the 
development of the cinema. 

It was not until the 1940s that 
Atlanta regained its pre-Sher- 
man prosperity. If Atlanta was 
known at all, it was as the home 
of Margaret Mitchell and Bobby 
Jones, the great pre-war golfer, 
and of Coca-Cola. Indeed, until 
World War Two, Coca-Cola was. 
the only business of note in 
Atlanta, though it was some 

business. The drink was brewed 
in 1866 by a pharmacist and 
Confederate veteran named 
John Pemberton, apparently as 
a hangover core. By 1916. its 
new owner, Asa Griggs Candler, 
was worth 550m. 

The era of Atlanta's great 
expansion was the 1960s, when 
local bankers and entrep- 
reneurs converted the run-down 
city into a skyscraper vision of a' 
New South. The driving figure 
was John Portman, an architect 
and developer, who was almost 
single-handed responsible for 
Auania s downtown skyline. 
“ Without John Portman, 
Atlanta would look like Mem- 
phis.” says Ted Spraggue, who 
runs the Atlanta Convention 
and Visitors Bureau. 


Portman's masterpiece, the 
Peachtree Center In downtown 
Atlanta, would be a nightmare 
were it not so much Ain. Spread 
oyer 45 acres are office buil- 
dings, hotels, gardens, galleries, 
restaurants and theatres, con- 
nected by dizzying horizontal 
walkways which rob the passen- 
ger of ail sense of ground leveL 

But the jewel of Portman's 
Atlanta are his hotels. The first 
was the Hyatt Regency, which 
opened in 1967 as a response to 
the booming convention busi- 
ness and introduced the world 
to the now-familiar convention 
lobby. Even more flamboyant 
and theatrical is the Marriott 
Marquis, which has been open 
two years. Its vast, open court is 
surrounded by receding storeys 
of rooms. Glass-bubble eleva- 
tors. glittering with fair-ground 
lights, whizz up and down. 

The place looks like the final 
scene of a Janies Bond Him, as 
the villains in their artillcial 
island or subterranean 
headquarters prepare to blow 
the world to nothing. Con- 
vent! oners love these hotels. I 
nave seen an elevator-full of 


: ■.?/• I -rl I 4' I . 

■■■■ ..- . "" ' 


.-i 


Atlanta, etty of Scarlett Oftera, Coca-Cola and next year's Democratic Party convention 


cosmetic dentists giggle like 
boys. 

these stylish and ambitious 
buildings have set the tone for 
Atlanta's development The sub- 
way boasts a station cut entirely 
out of granite while, at the air- 
port, passengers are whisked 
about by monorail while robots 
whisper soothing messages. The 
disadvantage of Portman's 
approach is the neglect of the 
city street and the sacrifice of 
the pedestrian to the auto- 
mobile. Just a few blocks away 
from Peachtree Center are the 
usual scenes or urban blight. 


There is little to do downtown at 
night 

It is almost a relief to pass to 
the other pole of Atlanta, to 
Auburn Avenue, once known as 
the "richest Negro street in the 
world” and. deeply associated 
with America’s greatest civil 
rights leader. Dr Martin Luther 
Wing , Jr. It was on Auburn. that 
the Southern Christian Leader-, 
ship Conference had its 
headquarters and King fought 
the battles that are now as 
famous and mysterious as those 
of the civil war— Montgomery, 
Birmingham, Selma. . 


Golf carts and wild life ... a guide to the islands 

Enjoying an offshore maze 


St Simon's, the largest and most 
developed oi the sea islands, 
merely to tramp ruins, but there 
are a few remains of this heroic 
era in Georgia's histoiy. The 
ruins of Oglethorpe's fort have 
been partly restored. They are 
built of "tabby,” a mixture of 
oyster shells and mortar, for 
there is no stone on any of the 
islands. From here Oglethorpe 
led out the Highlanders to de- 
feat a superior Spanish force at 
the Battle of Bloody Marsh in 
July 1742. 

Curiously, the most evocative 
place on St Simons is a church, 
not far from Fort Frederica, 
which was built no earlier than 
1884. The church, which is cal- 
led Christ Church, occupies a 
site when John and Charles 
Wesley are reputed to have 
preached in the open air. 
Perhaps this association with 
the brothers gives the church 
authority, perhaps not, but it is 
a serene and humble place. 

It is scarcely larger than a 
chapel, with narrow windows 


WHERE TO STAY 


On Sea Island: The Cloister 
(9 121-638-3611 

On St Simons: Sea Palms Golf 
& Tennis Resort (9I2X38-33S1 
or contact St Simons 
Chamber of Commerce 4912)- 
638-9014 

On Jekyll Island: Contact 
Convention and visitors 
Bureau (912X35-3636 

and a toy belfry, and is dwarfed 
by the evergreen oaks in the 
cemetery. It is as beautiful as 
the much earlier church at Mid- 
way across the water on the 
mainland- But Midway was 
built by Puritans from Mas- 
sachusetts, and the contrast be- 
tween their trim New England 
piety and the prodigal forest 
and swamp all round is very 
striking. 

Oglethorpe left St Simons and 
Georgia in 1743 and slavery was 
legalised six years later. The 


For excursions to Cumber- 
land Island, Sapelo Island. 
Little St Simons Island, 
contact: 

National Park Service, 
Cumberland Island: (912X82- 

4333 

Sapelo Island: (912X374684 

Little St Simons Inland- 
(912X38-7472 

.virgin coastline and' islands 
were colonised by planters from 
slave-owning states, predomi- 
nantly Virginia and South Caro- 
lina. The coastal marshlands 
were found ideal for growing 
rice while the islands enjoyed a 
brief boom in the first 30 years 
of the 19th century with the 
famous sea-island cotton, a form 
of long-staple cotton that is still 
highly valued. 

These plantations depended 
ton slaves. In the census taken 


in 1790, Georgia had 29,000 
slaves. In 1840. the number had 
swelled to 240.000. In Georgia 
as a whole, this meant a slave 
for every freeman, but along the 
coast and on the islands the 
ratio was nearer four slaves to 
one free. 

A single Sooth Carolina fami- 
ly, the Butlers, had over 500 
slaves labouring on their sea- 
island cotton plantation at the 
tip of St' Simons and at rice 
plantations on two smaller is- 
lands, . Butler and Little St 
Simons. 

' Once again, little remains of 
■this vast empire. .little St 
Simons is how a bird sanctuary, 
open to visitors who come from . 
St Simons by a daily ferry. It is ■ 
also possible for small groups to . 
stay overnight The Hampton 
estate on St Simons has been 
redeveloped. On Butler Island, 
which is crossed by Highway 17, 
-from Savannah, one can trace 
the outline of the rice fields In 
swamps fall of egrets and the 


Sing's tomb is on Auburn, set 
in the middle of . a small pool 
littered with flowers that are 
thrown there by schoolchildren. 
Nearby is a small exhibition. 
Here are his old-fashioned spot- 
ted ties, his scuffed dress shoes 
and a jewellery case full of cuf- 
flinks and gewgaws that show 
the dandy in the man. Further 
up the sreet is the comfortable 
house in which he was born. 

Both Auburn and Atlanta are 
Sing’s monument. The 
businesses on Auburn Avenue 
pioneered black economic 
power and it remains a friendly 

chimney of a rice-mill stands, 
wreathed in vines, beside the 
roadside verge. 

But Butler Island is a preg- 
nant place because the family 
left one lasting monument an 
account of slavery In the late 
1830s written by Fanny Kemble, 
the great English actress who 
married Pierce Butler and was 
ibriefly mistress of the estate. 

The Journal of a Residence on a 
Georgian Plantation m 1838- 
1839— available^ like much else, 
in Shaver's bookshop in Savan- 
nah— 4s a counterbalance to the 
'ideal picture of plantation life 
which the south has picked up 
from the romantic fiction of the 
early years of this century, 
above all from Gone With the 
Wind. 

Fanny’s marriage was dll, 
sintegrating, admittedly, but 
she paints an entirely convin- 
cing portrait not only of the hor- 
rors of the slaves’ lives but of 
the stultifying, brutal and 
second-rate existence, of their 
masters. She also describes the 
■mall fanners, impoverished by 
competition with slavery, de- 
generating into the “ pore white 
trash ” whose descendents still 
inhabit the pine barrens around 
Sav annah: with this wonderibl 
book, the visitor is well pre- 
pared for the nearby plantation 


and self-confident place, a far 
cry from the menace and decay 
of notbern ghettoes. to- the city 
as a whole, King’s political dis- 
ciples— above nil, Mr Andrew 
Young, the mayor of the city— . 
havefotged an alliance with the 
predominantly white business' 
community to make a unique, 
multi-racial coalition. - - . . 

Atlanta fa an excellent place, 
for excursions. Newest fa. Stone 
Mountain Park, where a 
monumental relief of the lead- 
ers of the Confederacy has been 
carved into the face of a granite 
mountain. This seems futile 
except as a syu^ol ^f Tinman 

perse rverance; but ..- the roc it 

i tself is beautifhl'and there is aj 
tremendous view, of A tlant a s 
distant skyline from the top. 

Further afield is the man-, 
made Lake Lanier. On an island, 
in the lake is a golf-course* 
beautiflil even by Georgian 
standards. Beyond are the 
mountains where the market for. 
second homes for Atlan t a n s is 
rapidly removing any trace of; 
hillbilly life. But the best exeux^ 
sion, unmissable even, is to 
Callaway Gardens, a magnifi- 
cent park and garden laid out by 
a textile millionaire. 

The garden exists in rather 
uneasy equilibrium with . a 
resort, providing tennis, fishing 
and gol£ An irate golfer 
recently slew a gander that 
spoiled his green. But at azalea 
time in April, or when the dog-, 
■woods flower later in the month, 
or in autumn, Callaway ranks! 
with any public garden in Amen 
ica. It has a quiet hoteL 

of Hoflvyl-Broadfield, which 
planted rice as late as 1915 and 
has been restored and opened 
to the public. 

After the Civil War, those 
plantations that escaped the 
torch faced a losing struggle fan 
cheap labour and yields fell, 
from exhausted land. The coast 
became increasingly the resort 
.of rich Yankees, who built win-, 
ter houses on the islands. The' 
most eccentric collection is on 
Jekyll Island, which was bought 
in 1886 by a group of northern 
robber barons as a winter club. 
The Jekyl Island Club, as it was 
known, included such names as 
Morgan, Whitney, Astor, Van- 
derbilt, Rockefeller, Crane, 
■Goodyear,. Pulitzer and Macy as 
members. 

Jekyll Island long ago lost its 
exclusiveness. A causeway has 
been built to replace the private 
steamer that picked ' up elub 
members from the railroad sta- 
tion at Brunswick, But it is still 
possible- to -visit the ornate 
Victorian clubhouse and the 
members' “ cottages,” large 
houses in a bewildering variety 
of architectural styles from 
Spanish colonial to mock- 
Tudor. There is a J- P. Morgan 
tennis court, 



Mm 



•C.- ‘.Tii . : • ■* - 


If you’re thinking of doing 
business in America, here’s a 
handy map of the United States. 





You won’t find a better loca- 
tion than Georgia anywhere in the 
United States. 

It's the hub of the Southeast, 
the fcstcsi-growing region in the 
country. 

Trunks to Atlanta’s Hartsfield 
International Airport, you can 
reach 80% of the US. population 
in two hours time. And the trade 
centers of the world are hours 
rather than days away. 

Georgia's pons provide access 
that's just as easy. The facilities at 
Savannah and Brunswick are mod- 
em and efficient. And are served 
by companion rail and highway 
svstcnis every bit as sophisticated. 


About the only thing easier 
than getting in and out of Georgia 
is doing business while you're here. 

Our government believes 
that fewer regulations are better 
So we haven't raised corporate tax 
rates since 1969. And our sate sales 
ax hasn’t gone up since its incep- 
tion cn er thirty years ago. 

What's more, the costs of 
land, labor and construction in 
Georgia are among the lowest of 
all industrial states. 

Of course we can't tell the 
whole Georgia story here. So fill 
out this form and send it to us. 

We'll be glad to complete 
the F*^ ure - 


( far free information write to: *”*] 

Mr. fevhn L Tnrbrvifle. Managing Diredoc 
1 European Office; Mr William L. Hutbert, j 
Deputy Dixetioc Georgia Depa rtm e n t of 1 
1 Industry and Trade. Dept. FT .Square (fa | 
1 Meeus. 20. 1040 Brussels, Belgium 1 

1 TeL 32 2 512 81 Sfc 32 2 512 82 93 I 


Company. 


! GEORGIA! 

[_The Inteiration^SQtej 






■\_ V J : 


j,8aw*».)g ,.^-n -wr . 










Financial Times Saturday May 9 1987 


WEEKEND FT XXIII 


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WEEKEND FT REPORT 


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One way of doing tt . . . nteamlng through Georgia 


From Atlanta to the sea, 

1987-style 


IN DECEMBER 1884 Rufus 
Meed Of Connecticut wrote 
home from Savannah: * We had 
a glorious old tramp right 
through the heart of the state, 
rioted and feasted on the coun- 
try, destroyed all the RR (rail- 
road), in short found s rich and 
overflowing country filled with 
cattle, hogs, sheep and fowls, 
corn, sweet potatoes and syrup, 
but left a barren waste for 'miles 
on either side of the road, burnt, 
millions of dollars worth of 
property, wasted and destroyed 
all the eatables we could not 
carry off and brought the war to 
the doors of Georgians so effec- 
tively, 1 go ess they will long 
remember the Yankees. 1 
enjoyed it all the time, we had 
pleasant weather and good 
roads, and easy times gen- 
erally” . 

Gen William Sherman esti- 
mated later, that his march to 
the' sea caused over $100m in 
damage to what was a relatively ’ 
poor state which had no bust 
roo a s leaving the Union. Given 
the havoc wrought, which Geor- 
gians still speak of in awe. ft is 
remarkable that anything much 
survives between Atlanta and 
Savannah. In fact,. the. heart of 
Georgia is scattered with mod- . 
erately sized towns with houses 
and streets surviving from 
before the Civil War. ■ 

Six of these towns make up 
what the promoters of Georgian 
tourism call the ^Antebellum 
Trail from Athens in the 
north, through Madison, Ea ton- 
ton, MULedgevSle and Clinton, 
to Macon in the south. But other 
towns, such as Augusta, 
W ashington and Columbus, 
have something to offer. As a 


guide in Macon put it “You 
want white columns, we got 
white columns.'” 

The. best way to see these 
towns is by hire car: preferably 
a large one, American and not 
very responsive, for Georgia is a 
large state with good reads but 
long rfiafamees between towns. 
The local religious and gospel 
music stations help while away 
the journey when the slash pine 
woods on each side of the road 
seem to go on for ever. 

As much as any in America, 
these Georgia towns truly sell 


local tour agency from serving 
cherxy-flavoared coffee. This 
drink, once tasted, is never for- 
gotten. 

Macon, which three times sur- 
vived attack by Union armies, 
has a fine collection of pre-Civil 
War houses including the so- 
called Cannonball House, 
which was nicked by a Federal- 
shot, and the Italianate Hay 
House, built in 1855 with all the 
mod cons of the London Great 
Exhibition. 

The preservation of many of 
these old houses was once the 


hi the heart of Georgia, all towns 
claim to be unique 


themselves to the visitor. They 
have mastered the art of the 
superlative. Each town stakes a 
to uniqueness with- such 
'precision that no other town 
could contest it. Stone Mountain 
is the Largest Exposed Mass of 
Granite In the World. Albany is 
the QuaHI-hunting Capital of 
the World. Waynesboro is the 
Bird Dog Capital of the World. 
Homer is the Home of the 
Largest Easter Egg Hunt in the 
World. 

Macon is the Cherry Blossom 
Capital of the World. This claim 
actually raises eyebrows, since 
Washington, DC, is better known 
for its flowering Japanese 
cherry trees. But Macon' is 
unperturbed. It says it has 20 
times ■ more trees than 
Washington and that is the end- 
of it This year, cold weather 
delayed the flowering of The 
trees but this did not stop the 


care of such redoubtable 
organisations as the Colonial 
Dames of America or the United 
Daughters of the Confederacy: 
the C ann onball House displays 
sorority portraits. But the con- 
servation movement, which first 
gained strength in the 1960s, is 
in ftaH career in Georgia and has 
ongnif«H even the real estate 
industry. 

In Columbus, a textile town on 
the border with Alabama, old 
houses have been lifted up and 
moved bodily to a downtown 
Historic District at the cost of 
about $15,000 per house. . In 
Augusta, an entire block of run- 
down old houses has been con- 
verted into a hotel, the T elfa i r 
inn. Appropriately in the home 
of the Masters, breakfast Is deli- 
vered by golf-cart. 

This new.passion for the did 
can go too far. Visitors are occa 1 
sionally shown buildings of very 


modest architectural distinc- 
tion and then regaled with 
information on the weight of the 
chandeliers or the square foot- 
age of the wine-cellar. A short 
tour should probably take in 
only Macon, Madison and the 
houses outside Washington 
associated with the two leading 
Georgians in the Confederacy. 
Robert Toombs and Alexander 
Stephens. Near Thomasville. in 
the e x tre m e south-west, is the 
Pebble Hill Plantation, with a 
fine house open to the public. 
Pebble Hill was one of many 
rich plantations later sold to 
Northerners as shooting boxes 
for the local quail, dove and 
deer. 

Of these Georgia towns, only 
Augusta has an international 
reputation and that is because 
of the incomparable blessing of 
its golf course, laid out by Bobby 
Jones in the 1920s. Augusta 
itself has slid some way since its 
pre-eminence, as the main town 
on the middle Savannah River,, 
during the tobacco and cotton 
eras. Then successful mer- 
chants built large and comfort- 
able houses on the hill over- 
looking the river. After the Civil 
War, • northerners were 

attracted to the town as an 
escape from cold winters. The 
suburb of Summerville h«k an 
atmosphere entirely of its own, 
a sort of Edwardian Beverly 
Hills. 

The strangest relic in Augusta 
stands in front of one of two 
textile mills. It is the ruined 
chimney of the Confederacy's 
only powder works. It is the only 
thing still standing that was 
built by the Confederate States. 



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THE PEOPLE AND PLACES OF WESHN. 




Savannah 


where even General Sherman was impressed 


Georgian Georgia 


SAVANNAH IS like do other 
town in North America. In 
describing the place, Amer- 
icans often become tongue-tied. 
They talk about irregular 
blocks, one-way streets and dif- 
ficult parking. Even Geo. Wil- 
liam T. Sherman, the Union 
commander who might have 
burned the town but did not, 
became uncharacteristically 
imprecise in trying to describe 
Savannah: “ Its streets perfectly 
regular, crossing each other at 
right angles; and at many of the 
intersections were small inclo- 
sures in the nature of parks.” 

Yet to Europeans, Savannah 
is hannHngly familiar. Like 
many 18th century towns in 
Europe, it is laid out around a 
series of garden squares. 
Around these squares are neo- 
classical churches and houses 
with porticoes, fanlights and 
wrought-iron railings. The place 
looks a little like Dublin. 

Bat it is Dublin under some 
tropical corse. The air is heavy. 
The river down by the old cotton 
warehouses is wide and brown 
and slow. The square gardens 
are shaded by immense ever- 
green oaks, which dangle grey 
Spanish moss on banks of 
azaleas and camellias. 

The contrast between this 
southern torpor and luxuriance 
and the sober Georgian English 
or New England architecture is 
startling. Even Sherman was 
impressed. “ These streets and 
parks were lined with the hand- 
somest shade-trees of which 1 
have knowledge, the willow-leaf 
live-oak, evergreens of 
exquisite beauty, and these cer- 
tainly entitled Savannah to its 
reputation as a handsome town 
more than the houses, which, 
though comfortable, would 
hardly make a display on Fifth 
Avenue or the Boulevard Hauss- 
xnann of Paris.” 

The town, which retains a 
military precision and simplic- 
ity, was laid out by another 
general: James Oglethorpe, the 
founder of Georgia, who chose 
the site on a low bluff above the 
Savannah River. “ I fixed upon a 
healthy situation about 10 miles 
from tile sea,” he wrote to the 
trustees of the new colony iir 
early 1733. “The plain high 
ground extends into the country 
five or six miles, and along the 
river-side about a mile. Upon 
the river-side in the centre of 
this plain I have laid out the 
town.” 

Oglethorpe’s plan could not 
have been simpler: a set of 
“ wards,” arranged around a 
small square with public buil- 
dings and residential plots, 
placed neatly one beside the 
other as the town expanded. 
Even the cemetery, fat with the 
victims of the yellow fever that 
plagued the town in the early 
19th century, is in the form of 
the square. 

If Oglethorpe laid out the 
town. King Cotton filled iL Big 
cotton rafts, known as cotton 
boxes, shipped millions of bales 
down from Augusta to the sail- 
ing ships tied up at Savannah 
for shipment to the mills of Lan- 
cashire. As early as 1805, Savan- 
nah’s cotton merchants— or fac- 
tors— were handling a quarter 
of all the American cotton pas- 
sing through Liverpool and the 
cotton price was made on the 
Savannah wharves. 

Although the cotton has 
vanished, the atmosphere of 
this time has not entirely fled. 
On Factor's Walk beside the 
river, ornate iron bridgeways 
connect what were once the fac- 
tor’s offices with Bay Street and 
the town. 

The town survived the descent 
in December 1864 of Gen Sher- 
man, who had already burned 
Atlanta and cut a swathe across 
Georgia on his famous march to 
the sea. The Confederate army 
slipped quietly away by night 
and Sherman accepted the 
town's prudent surrender. In a 
telegram to President Lincoln, 
Sherman wrote: “ I beg to pre- 
sent to you as a Christmas gift 
the city of Savannah, with 150 
heavy guns and plenty of 
ammunition, also about 25,000 
bales of cotton.” 

But Savannah could not sur- 
vive the collapse of the cotton 

m a rk e t at the end of the 19th 
century. Cotton had traded at a 
dollar a pound at the end of the 
Civil War. In 1895, it was selling 
for 4 cents a pound. The town 
entered a long period of decay. 
Outside wartime, the port was 
increasingly idle. The old town 
degenerated into a genteel 
Mum, living in the past 

However, the ruling class that 
presided over. Savannah’s 
deterioration also helped cause 
its regeneration. In 1955. a 



A piece of the old South . . . Savannah's Cotton Exchange 


group of Savannah grand 
dames, defeated in a campaign 
to save the town's vegetable and 
fish market, formed the Historic 
Savannah Foundation which 
bought up old houses and sold 
them on under covenants that 
committed the new owners to 
restore them. 

The very names of these 
ladies— Ann C. Hunter. Kather- 
ine J. Clark, Eleanor A. Dillard 
and others— are redolent of 
southern gentility and some 
Americans have complained 
that the revival of Savannah's 
old town has been bought at the 
expense of its “ pre-Historic ” 
liveliness and diversity. The 
gentification of Savannah, as of 
New York, has helped drive 
blacks and poor whites out of 
the residential centre. But with- 
out tourism, it is hard to see how 
Savannah would have reco- 
vered from the decline of its 
port 

There is a great deal to see in 
Savannah, but nothing that sim- 
ply has to be seen, which is nice. 
There is a maritime museum 
and a group of coastal forts, 
including Fort Pulaski, which 
was desigend by Robert E. Lee 
as a young engineer. Scattered 
across the town are Regency or 
early Victorian townhouses. 
including a group designed by 
the English architect, William 
Jay. The best of these, the 
Owens-Tbomas House on Aber- 
corn St was designed by Jay as a 
young man in England and has 
all the sparkle and cleverness of 
a student work, run off at speed 
for a distant nouvean riche. 
Behind the house is a lovely 
modern garden. 

But Savannah is really just for 
walking about in: say. from the 
Factors’ Walk down Bull St 
through its succession of beauti- 
ful squares, all of them diffe- 
rent Or to the Colonial Park 
Cemetery or the Victorian dis- 
trict, whose wood-frame and 
gingerbread houses look as if 
they came out of the same Sears 
Roebuck catalogue. 

The best time to walk is the 
evening, when the cars have 
vanished and the streets have 
cooled down, for even in spring 
the daytime temperature is in 
the 80$. Old black men, neatly 
dressed, chatter under the live- 
oaks. Through railings or brick- 
lattice, you can see people 
watering their luxuriant gar- 
dens. Children play torpidly in 
dusty mews streets. It is quiet 
and slow and a little mou -rnfuL 

Or you can take a carriage 
round the town, preferably after 
nightfall, where the sound of the 
horses’ hooves is the only sound 
and the street lights come dimly 
through the branches- In Savan- 
nah, you do not feel silly in a 
carriage. 


INTERNATIONAL FLIGHTS 
INTO ATLANTA 
Brussels, Belgium 

1 Flight per day 

£flBdoin, Knyland 

2 Flights per day 
Paris, France 

2 Flights per day 
Frankfort, West Germany 

2 Flights per day 

Research Associate : Rhtka Nachoma 
For information on hotels, tours 
and so on in the towns of central 
Georgia, contact: 

Albany (912) 883 6900 
Athens (404) 549 6800 
Augusta (404) 722 0421 
Columbus (404) 322 1613 
Macon (912) 743 3401 
Madison (404) 342 4454 
Washington (404) 678 2013 


For further information: 
Atlanta Convention & Visitors 
Bureau (4041-521-6600 
HOW TO GET THERE: 
Hartsfieid International Air- 
port : 12 miles from city centre.- 
Amtrak: Peachtree Station. 
Bus: American TTailways, 
Greyhound, etc. 

WHERE TO STAY: 

Atlanta Hilton: 

(4Q4K55D-2CKH) 

Hyatt Regency: 

(4041-577-1234 
Westin Peachtree: 

(404 >-659-1400 
Marriott Marquis: 

(404 >-521-0000 
Callaway Gardens: 

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XXIV WEEKEND IT 


Financial Times Saturday May 9 l® 87 





MOUNTAINEERING 



IT 1VAS Hhe being in a tin 
drum wiih a hundred navvies 
hammering it from the out- 
side. There was no question 
of sleep os the spindrift, an 
icy white film, forced its way 
through the zip entrance and 
spread over our sleeping bags. 
The walls of the tent, com- 
pressed by the build-up of snow 
outside, slowly pushed in on 
us until we could no longer 
turn, jammed together Like a 
pair of sardines, nose to tail 
in the tiny confines of our tent. 
I wondered whether it would 
last the night and. If it was 
ripped apart, what the hell 
we’d do. 

But it did survive and by 
dawn the sky above was clear 
although banks of cloud were 
lying in ambush around the 
peaks opposite. The sky and 
mountain? had a cold, metallic 
quality, warning of the storm 
to come. There was no longer 
any question in the minds of 
either Jim Fotheringham or 
myself. We had to get back 
down while we could. 

V>'e had reached base camp 
below the North Face of Men- 
Iungt*e on March 25. 10 days 
behind schedule, because of the 
difficulty of the approach, but 
at least we were fairly well 
acclimatised to the altitude 
since wc had already spent so 
much time between 4.000 and 
5.000 metres. We set out on our 
first recce on March 27 to look 
at the north side of the moun- 
tain. walking up a long moraine 
slope lowering above the glacier 
to the north of Meniungtse hut 
there was no hope on that side. 

The following day we set out 
to explore the southern aspect. 
We knew from photographs 
taken from Nepal that the 
southern aspect looked more 
promising. 

The four ridges dropping 
down from the high ramparts of 
the southern aspect all appeared 
steep and difficult but the route 
thar gave the greatest chance 
of success was more a buttress 
than a ridge. 

Three days later, on April 2, 
we were at 17.200 feet at the 
foot of the buttress. We had 
decided to use some fixed rope, 
both to make it safer for the 
descent and to give us a higher 
jumping-off point, before corn- 
mining ourselves to an Alpine- 
style push for the summit. 

The approach to the foot of 
the buttress was frightening. 
Bjorn Myrer-Lund. our best 
rock climber, surged into the 
front, leading across steep 
granite slabs, trailing the fix- 
ing rope behind him. I brought 
up the rear, anchoring the rope 
to the pitons so that we could 
use it as a hand rail as we 
passed back and forth. 


Storms raged. One team member 
was struck by lightning. And 
the yeti remained elusive. 

Chris Bonington describes 
the hazards and heroics of an 
Anglo-Norwegian climb in Tibet 

Meniungtse 

remains 

unconquered 



This led to a stretch that was 
little more than walk but we 
left a rope in place since it 
seemed particularly threatened 
by the hanging glacier above. 
We moved on up to a snow 
bay at the side of the ridge 
and that afternoon were able 
to run out three rope lengths 
before dropping back down to 
our advance base in the valley. 

The following day we re- 
turned to the foot of the ridge 
wiih our tents and food but we 
still had some fixed rope to 
run out. On April 5, carrying 
just the climbing gear and rope, 
we started to put the rest of 
the rope in place. This took us 
to the rocky crest of the but- 
tress and immediately progress 
slowed. What had looked like 
solid rock from a distance, 
turned out to be a terrifying 
pile of shattered blocks. Jim 
led one pitch. It was slow and 
frightening work, for nothing 
was secure. There was the con- 
stant threat of dislodging one 
of the huge rocks, all of which 
weighed several tons. The next 
rope length was even worse. 

Bjorn announced: “If the 
rock doesn't get any better we 
can't go on. It's too dangerous.” 
Jim agreed. But I wanted to 


push on and felt that we had 
already put so much into this 
climb it was worth going 
further in the hope that condi- 
tions would improve. It was 
about time I led a pitch any- 
way. so I started up the broken 
ridge. The difficulties had eased 
and the rock was marginally 
more sound. We climbed on 
for another four or five rope 
lengths until we had used up 
both our fixed rope and our 
four climbing ropes, before 
dropping back to our camp at 
the foot of the ridge. 

Now it was time for summit 
attempt Next morning, heavily 
laden with food for six days, 
cooking stoves, gas cylinders, 
tents, sleeping bags and spare 
clothes, we set out for the top 
of our fixed ropes. By late after- 
noon we had reached the pre- 
vious day's high point and had 
picked up the climbing ropes, 
we needed for the rest of the 
ascent, thus cutting the “ umbili- 
cal cord” that linked us with 
the safety of the ground. 

Clouds had piled up during 
the afternoon but didn’t look 
too dangerous. The weather still 
appeared settled. Jim and I 
built a platform for our tent, 
carving the top off a small crest 


of snow and building it out with 
flat rocks piled one on top of 
the other. Odd Eliassen and 
Bjorn were camped several 
metres above us. They had run 
out a further rope length and 
shouted down that the way 
ahead looked clear. That night 
we were both full of optimism 
confident that we would reach 
the foot of the band barring our 
way to the easy summit plateau 
the following day. But our opti- 
mism was misplaced. 

At last we were ready. It 
was my turn to lead,' and the 
difficulties had eased. I pulled 
round an overhang on the 
ridge, picked my way up the 
huge granite blocks until Bjorn 
warned me that I bad nearly 
run out of rape. A short steep 
pitch and we were on snow. 

We were making faster pro- 
gress now but the clouds, 
almost unnoticed in our con- 
centration, had come swirling 
da. It was three in the after- 
noon and already it was be- 
ginning to snow. Bjorn was 
now another two rope lengths 
ahead, having by-passed 

Another rock tower and 
approaching the next. I was 
beginning to dag out a ledge. 

As I did so the wind slowly 


built up. This wasn’t just after- 
noon doud and snow. It was 
something much more 
ominous. Jim and I were dig- 
ging into the crest of a steep 
narrow snow ridge, and then 
suddenly I was aware of a 
high pitched buzz aU around 
us. Jim collapsed onto his 
knees, clutching his head. 

H I’ve been hit," he muttered. 
It was lightning.' We couldn’t 
have been more exposed and 
yet there was nothing we' 
could do about it. We judged 
the ledge big enough and 
erected our tiny tent. By this 
tune it was snowing hard. And 
now the wind began to rise, 
screaming and hammering out 
of the west, tearing and 
clutching at the tent. 

The following morning the 
wind was as fierce as .ever. 
Bjorn and Odd’s tent had been 
torn to shreds and they had 
dropped their stove. Our tent 
had survived, but we were bat- 
tered by the experience and 
resigned to retreat while we 
still could. 

Retreat was no easy matter. 
We were now about nine rope 
lengths above the top of the 
fixed ropes we had left in place. 
This meant abseiling down the 


double ropes, bat first someone 
had to go out and retrieve our 
climb ing ropes that Bjorn had 
fixed the previous night I 
volunteered. Jim came out to 
join me and together we 
recovered the two ropes. By the 
time we got back to the camp, 
Bjorn and Odd were packed. 
We also took down our tent and 
abandoned our haven. 

I was the last to go down, 
had a iew feet to go to - reach 
the abseil rope and decided to 
make a short abseil from the 
snow stake we had used to 
secure our camp. I clipped the 
double rape through the kara- 
biner, leaned back, and sud- 
denly I was tumbling back- 
wards. “ God — I’ve had itl” 

My reflexes took over. As I 
somersaulted past the main 
abseil point, I managed to grab 
the rape, felt it tear through 
my hands, somehow managed 
to h»"g on and my uncontrolled 
fall stopped. It was only then 
that 1 had time to assess what 
had happened^ I* d pulled out 
the snow anchor. I had a feeling 
more of shame at my mistake 
than one of shock or fear. 
Chastened, I dipped into the 
abseil ropes ana star 


started down 


to join the others: I didn’t tell 
them anything until the follow- 
ing day. 

It was late afternoon when 
we reached the foot of the ridge 
at our first camp. Without dis- 
cussion, we ' stripped the site 
and carried everything back 
down to the valley, a further 
three thousand -feet below. 

We began to plan -again. 
Surely there must be a better 
route up the montain? We 
hadn't really examined the far 
south east -ridge which led 
straight to the summit. Maybe 
that could give us a chance. On 
April 13, Jim, Odd, Torgeir 
Fosse and Helge Ringdal set 
out to make a recce. Bjorn and 
I wanted one more day's rest. 

They walked below the south 
east ridge, gazed up at It and 
realised that it would be even 
more difficult arid time-consum- 
ing than the route we had just 
completed. But they did see 
something else. The Menlung 
valley was rich in wild life. We 
had already seen herds of small 
deer, the fresh trades of a snow 
leopard, and coveys of Ram 
Chickaw, a grouse-like bird, but 
now they came across an even 
more interesting track, 

It seemed that of a biped— 


dmBar to, but smaller than the 
tracks photographed in 1952 by 
the famous mountain explorer 
Eric Shipton, who was prob- 
ably, with Michael Ward, the 
fbst European to penetrate the 
Menlung Valley. Odd and Helge 
photographed these , tracks and 
described them to Kusang, our 
Tibetan assistant He tow . us 
that they could be the tracks of 
the “chuti,” which is a small 
version of the yeti— at least 
they had discovered somthbig. 

We decided to return to our 
original route, fixin g the re- 
mainder of our rope so that we 
could have a higher jumping 
off point. We returned to the 
fray on April 16, spent two days 
reclimbing the difficult section 
and leaving a line of fixed rope 
behind us. However, at the end 
of the second day we were hit 
by another thunder storm and 
retreated first to advance base 
»r»d then all the way back to 
base. 

The following morning the 
weather seemed to improve. We 
rushed straight back, frightened 
that we might have lost a win- 
dow in the weather pattern 
— went from base at 13,000. feet 
to Camp 1 at 1*7,200 feet in a 
single day and on the following 
one, April 22, climbed the ropes 
we had fixed to' the previous 
high point at 20,000 feet. 

We got there just before 
dusk. We now had plenty of 
food and fuel, dug- our tents 
well in and felt well set up 
for a push towards the summit- 
But that evening it begajr ro 
snow and blow, and kept it tip 
throughout the night In late 
afternoon. Odd and Bjorn, who 
had camped two rope lengths 
above us, arrived back down. 
“ We’ve decided to go down. 
Look, the weather’s breaking np 
again.” 

Jim and I decided to sit it 
out one more night hoping for 
an improvement. It Started 

snowing again 10 minutes after 
they had left and by dark the 
wind had built up into a 
crescendo of t er rif y ing force. 

The following morning, 
shaken and exhausted, we fled. 
We got out just -in tune, for 
the weather deteriorated still 
farther. We were glad to 
be alive. We had come through, 
a close knit and very happy 
team, had seen a beautiful, wild 
and unspoilt .region and bad 
given our best to one of the 
steepest and most attractive 
un climbed peaks in the world. 

1 want to go back «nd want 
to try to find a way through 
Menlungtse’s defences with 
that same group of close-friends. 

expedition 
. by the 




The Menlungste 
zoos cosponsored 
Financial Times. 




jjjj w5s*‘ - 


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’ac : er thrsai 

;; £ :■ - 


FT CROSSWORD PUZZLE No. 6,322 

GRIFFIN 



Prises of CIO each for the first five correct solutions opened. Solutions, 
to be received by next Thursday, marked Crossword on the envelope, to 
The Financial Tima, 10 Cannon Street, London EC4P 4BY. Solution 
next Saturday. 


Si Seat placed where people 
drive (6) 

23 She's the new daily (5) 

24 Calf is domestic animal, in 
other words (5) 

26 Tree by river, now a new 
variety (5) 


Solution to Prate Wo. <L321 


HHMKcaid amrarnnra 
a □ a h m a 
aoEraHma 00000013 

B Q 0 H 0 3 a 

aosBsanEoa aaas 
□ 13 a an 
nanna RnonassB 
ta cd r ra [d 
Hnansnas 0000a 
ra 0 no 0 

SHQH QJOHaQBSEms 
0 19 'H 13 0 B R 
□EEOQEUS aHOESan 
Q E Cl 0 0 E 
1200000 3E33E30 


ACROSS 

X Improvised foreign poem 
adapted and included (14) 

10 Student enters lower when 
sunny (5) 

11 Discount on every ring we 
can order (9) 

12 Lodge is turned into ware- 
house 17) 

13 Children dread entering 
something found on beaches 
i3-4> 

14 Quirtabout fate of animal (5) 

16 Against mcrciftil rival (D) 

19 Predecessor procures new 

back door (9) 

29 Back street plant producing 
matches (5) 

3 Ecund to get boiled stew 
around midnight (71 

£5 Sincere Parisian is embrac- 
ing English composer tT> 

27 Ena's wandering round 
Gateshead after a monster 
plant (9) 

28 Since it's awftilly wet out- 
side. refuse (5) 

29 Superior act ends with lan- 
tern 

2 The unknown Doctor Hope 
only plays music t9) 

3 Brings in sailors in a rough 
sea i5> 

4 Customs costs operate 
internally i9) 

5 Redhead ought to take the 
French parts (5) 

6 Spy after information from 
shopkeeper (9) 

7 Cat one limes going outside, 
you say? (5) 

8 Willowy South Bank (7) 

f Rocky is sad about English 

actor's remarks (6) 

15 Rough sort of girl gave you 

the time (9) Mrs B. R. Smith, Honley. Hud- 

17 Sister made sounds tike dersfleld: Mrs A Comerford, 

nanny (91 London NW8; Mrs M. Woods, 

18 Sipped, say. to shift indigos- Chichester, Sussex; Mrs Mar- 
tian i9l garct Lawson, Saltburn, Cleve- 

29 Support the replacement land; Mr John E. Brown, Wins* 
tipster (7) combe, Avon. 


SOLUTION AND WINNERS OF 
PUZZLE No. 6,317 



SATURDAY 


TELEVISION AND RADIO 


t indicate* programme* 
in bitch and white 

BBC 1 

8 JO .in Fsmily-Nesa. 8-35 Dogtonlan 
and the Three Muakehounda. 8.00 If a 
Wicked I 1055 Film : "Datoka — In- 
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Mmaiiaw Super* hark. 1247 Weslhar. 
12J0 Grandstand including 12.35 Foot- 
ball Focus: 1.00 News: 1.05 Match- 
slay Goll at Chepstow: 1-55. 2-30 and 

1.00 Racing from Lingfieid Park: 2.10 
Rugby Union (The Middlesex Sevens, 
coverage on B8C2 at 4A0 and 6.20): 
2.40 Rallying; 3.10 Gall from Chepstow: 
3.50 Hall-tunas: 3J5 Goll: 4.35 Final 
Score. 

5.05 Newa. 5.15 Regional pro* 
qrammas. 620 Oliver Twist. 5.50 The 
tittle and Urge Show. 6.25 Film : 
'Treasure ol the Yankea Zephyr,” star- 
ing Donald PJeasenca and George 
Bippard. 8.00 Eurovilion Song Con- 
test 1387, lore from Brut sal a (Stereo 
round on VHF Radio 21. 11.00 News 
and Sport. 11.15 American Basketball. 
12.05 am Matt Houiton. 

BBC 2 

235 pro Chess Classic (Kasparov v 
Mubnar). 2.55 Film : 'The Three God- 
•■Uhore." starring John, Wayne, Pedro 
Vmandaris and Harrv Carey Jnr. 4.40 
iki;by Union: The Sava and Pro a par 
Mddlases Sevens. 523 The Weak In 
-ha Lords. 6.06 100 Great Sporting 
Moments: Throe Miles — AAA Cham- 
sionsfc'O 1385. 6.20 Rugby Union 

'krai of A* Middlesex 5evana). 0.66 
Vben in Spain. 7.20 Newsview. BXO 
“errnan Festival: "The Theatre ol Pa»sr 
item." 8.50 0>d You See . . 7 8J0 

* Dorothy L. Savers Mystery: Have 

•>■1 Carcase. HUS Prime Levi Jewry. 
'1.IR-1240 am Film: ''Entertaining Mr 
“loans.” starring Harry Andrews and 
-, «*yl R« ; d. 

LONDON 

6.55 am TV -am Breakfast Pre- 
: ram. me. 9.25 Gat Frajh. 11 JO Tarra- 
'tawka. 12-00 News. 12.06 pm Saint and 


Greavaie. 12J0 Wrestling. 1X0 "The 
Arrows of Robin Hood.” 2X5 Boxing. 
446 Results Service. 5-00 News. 6.06 
The Grumblewaeda Show. 5J5 ALF 

6.06 The A-Team. 7-00 The Birthday 
Show. 7.45 Tlta Price ia Right. 846 
Nawa. 9-00 CATS Eyes. 10.00 Par- 
kinson One-to-Ona with Spike Milligan. 
10.46 LWT News Headlines, fallowed by 
Movie Premiere : ’’Children of the 
Com,” starring Peter Horton. 12X5 am 
Kris Krisioflarson at Devil's Lake. 

CHANNEL 4 

9JS sm Pete In Particular. 9 JO 

4 What ifa Worth. 10X0 The Living 
Body. 10-45 The World — A Television 
Hiatoiy. 11.18 The Lite end Times of 
Lord Mountbatton. 12.15 pm Iseura 
The Slave Girl. 12.56 World of 
Animation. 14)6 "Walk and In Havana.*’ 
Alice Faye etara with Cesar Romaro 
and Carmen Miranda. 12.36 An In- 
spector Calls, starring Alistair Sim. 

4.06 Glacier Express 5X5 Brookalde 
Omnibus. 

6.00 Right to flaply. 8 JO Challenge 
to Sport. 7.00 News Summary followed 
by The Gods of War. 7 JO A Car for 
Africa. 8 JO The Wine Programme. 

8.00 Lost Balonoinga. 10-00 pm "That 
Championship Sanson.” 12.00 Don’t 
Miss Wax. fl2X0 am "Seconds.” 
John Randolph atars with Rock Hud- 
son. 

S4C WALES 

11.00 am A Weak In Polltlca. 11.46 

What the Papers Say. 12.00 Tha 
Makmg of Britain. 12J0 pm A Passage 
to Britain. Yl.00 Feature Film: “Kid- 
napped. 2X0 Feature FHm: " The 
Phantom President.'’ 4.05 Baryshnikov 
in Hollywood. 6.00 Sidney Nolan. 0.00 
Right to Reply. 6 JO Challenge to 

Soon. 

17.00 The March of Time. 7.30 
Newyddiort. 7.50 Cymar Pwy. 6 JO 
Elinor Ac Eraili- 8.06 Y Maes Chwaraa. 
9X6 Slos Siarad Hi: leith Ar Daith. 
10.10 E.R, 10.40 Aak Or Ruth: Alda 
—Part 2. 111.10 Fee turn Film: “ I an 
a Camara." starring Laurence Harvey 
end Julie Harris with Sbstley Winters. 



Mandy Montgomery (left) and Tracey Dixon. In 
The Gxnmbleweeds, ITV, 5.05 


I BA Regions at London 
except at (he fallowing times: 
ANGLIA 

12JS am Paraguayan Praise. 
CENTRAL 

1 JO pro Start! set. ISO The Incredible 
Hirik. 5.06 The A-Team. «4» ALF. 
6J0 Tha Grumblewaeda Show. 1X25 
pro Prisoner Cell Block H. 1.25 "Urban 
Cowboy." a tarring John Travolta and 
Debra Winger. Central News 

Cosed owe followed by Central Job- 
finder ‘87. 


CHANNEL 

11X9 ero Today’s Wsathar. 10.48 
pm The 8ig Match. 11.46 The Style 
Council ’’ Showbiz." 

GRAMPIAN 

12JS era Reflections followed by 
Cricket. 

GRANADA 

1-20 pm UFO. X1E Easy Street. 
8X6 ALF. 5J8 The A-Team. 6 30 
The GrumMewoeda Show. 1221 am 
Meltdown .{" Meatioaf 


HTV 

11-57 am HTV News. 1X26 amt The 
Party— Action Against Ai d e- P ert 2. 
SCOTTISH 
1X2S am Late Can. 

TSW 

11-27 am Goa Honsybun’a Magic 
Birthdays. 11.57 TSW News. 6X16 
Newspon. 6.10 Knight Rider. 5X5 
The GrumMewands Show. 0.05 Biock- 
buetera. 6JS ALF. 1X25 atn Postscript. 
TVS 

11-57 am TVS Weather. 1X25 am The 
Party: Part ill (More action against 
AIDS}. 133 am Company. 

TYNE TEES 

BOB pm ALF. US Ilia A-Team. 0JQ 
The Grumblewaeda Show. 1X25 sen 
Poetry Of Tha People.' 

ULSTER 

11-08 am Lunchtime . News. i£S 
Sports Results. 0X18 Ulster Nows. 5.05 
ALF. 546 The Fen Guy. 0-30 The 
Gnnnbreweede Shaw. 1130 am News 
At Bedtime. . 

YORKSHIRE 

5X16 pm ALF. 0J6 The A-Team. 6X0 
The Grumbleweads Show. T2-2S ero The 
Saturday Late Film: " Chinatown " 
■tarring Jack Hfchgtson . end Faye 
Dunaway. 2.50 Jobfindor. 

Stereo, on VHF 
BBC RADIO 2 

8X6 ero David Jacobs. 10.00 Sounds 
of tiro 00s. 11.00 Album Time. 1.00 

pm The News HuddCnea. 1-30 Sport 
on 2 Including; Football; Racing tram 
UitgfMd Perk; Golf at Chepstow; 
Crtcket( Baneoo ft Hedges Cup . end 
Essex v Pakistan): 5.00 Sports Report. 
M# Pop Score. CJO OU Stagers. 

7.00 The Prase Gang. 7 JO ' String 
Sound. 8.00 Eurovision Song Contest 
from Brussels (Simultaneous broadcast 
with BSC 1). 11X6 Martin Kslner. 

1X0 am Steve Madden present* "Might- 
ride.” 3X04X0 A Little Kght Music. 

BBC RADIO 3 

7X0 en Newt. 7X5 Anbade (8.00 
World Service News). 9J>0' News. 9XG 


Record Review. 10.15 Stereo Release: 
Hummel e Plano Concerto in B minor 
Op 88 and Beethoven's Symphony 
No X 11X0 Chicago Symphony 
Orchestra: Chebrler (Suite puwsle). 
Cenok (Concerto for two pianos and 
percussion); (12L20 pro Interval Read- 
ing): 12X3 Bizet {Symphony. No 1), 
1X0 News. 1.06 The Salomon Qua not 
pteya Sam martini. Boccherini - end 
Haydn. 1X0 Jazz Flirtations: Stravinsky. 
Selber. Schuller and Don Banks. 1X0 
Heydn's Symphony No 26 and Malawi's 
fifth played by the BBC Welsh SO. 
*56 Nash Ensemble. 5,00 Jeez Record 
Requests. 5.45 Critlca’ Forum. 6X8 
Komgold: String Saxret Op 10. 7.16 
Morart and Schubert. Berlin Radio SO 
conducted by the late Eng an Jo chum: 
Mrsan (clarinet Concerto K B22, wMi 
Sabine Meyer); PAB Interval Reading): 
7X0 Schubert (Symphony No 8). 8X0 
8chubert Ensemble of London: Cham- 
ber music by Schumann and Colin 
Matihawra. 9X0 Edwin Muir (1087- 
1858). 10.16 Plano Recital: Andrew Ball 
Ptey# Ives. Busoni and Chris Dench. 

Ancdtar World: Music from Indie. 
11X7-12X0 News. 

BBC RADIO 4 

7-00 sm Today. 9.00 Nawa. 9X6 Sport 
On 4. 9X0 Breakaway. 10X0 Nawy 
Lpom Ends. 11X0 The Week In West- 
imnstsr. Il.ffi From Our Own Corns- 
pondent. 11 .K The Weekend On 4. 
12X0 News; Money Box. 12X7 pm 
Just A Minute I 12X6 Weather. 1.00 
News. I.io Any Questions? 1X5 Ship- 
ping Forecast. 2.00 News; Allitslr 
woke • Americas Collection. 2X0 The 
Afternoon Play (S). 4X0 News: Inter- 
rmloruil Au IS nmem. 4X0 Science Now. 

5100 The Living World. 5X6 Weak 
Ending. 5X0 Stamping Forecast. 6X0 
Tr i wl ' 6 -°° Weathsr. Travel. 
SC* Sport* round-up. 6XS Stno 

P®, W»«k vaith Robart Robinson (S). 
7X0 SstaTday Ntftht Theatre (S)- 8X0 
S«"« <S). 8X0 Thrilleri 9X0 
T.®? “B Tan fS). 9XB Weather. 10X0 
I®- 1 ® The Saturday Pasture fSi. 
10.45 Th, Boat Dev Of Your Ufa? 11X0 
Nineteen Ninety Bqbt fS). TJXO Un- 
neturel An* (S). 12X0.12.1B am Newt. 


SUNDAY 


f Indicate* programme fat 
black end white 

BBC 1 

8.55 wn Fliy School. 5.10 Tha 
leresn Marathon, 12.10 pro This la 
.he Dr/. 12.40 The Lcndon Marathon. 
1X3 Farming. 1.43 Weather for 
Tr.T.eia. 1.48 This Weak Nau Weak. 
L4S EaitEitdira. 3.4S Film: " Man 
■Viihcur A Star," Barring Kirk Douglas, 
ieaani Crain end Claire Trevor. 5.10 
iT* London Marathon (highlights). 
t.50 The An: mala Rcadshcw. 

8-25 New*. 6-40 Praise Bat 7.15 The 
Russ Abbot Show. 7.45 The District 
furse- S-36 Mastermind. 9.06 Newa. 
1X0 That's Wet 10-05 whan \ Gat To 
riaaven. 10.40 Discovering Parnrguaie. 
■1.05 Tha London Marathon (re-run of 
:*ia bishhghu;. 

BBC 2 

1X0 pm Rugby Special. 2.15 Sunday 
Srandstand. including Cricket, Mote- 
ttcis and Gclf. 6.40 Tha Manny Pro* 
jramme. 7.15 On the Houaa. 7.45 
i/ardi's " Otallo ” (aimuitaneous bread* 
;ai: w>:h BBC Radio 3). 10.15*12.56 sm 
e iita: " Meuse Calls." starring Walter 
Vlsnhau. Glenda Jackson. Art Camay 
:nd Riciard Benjamin. 

LONDON 

8.55 am TV -am Breakfast Programme. 
9X5 Wake Up London. 9X0 Dieney'a 
Adventures of tee Gummi Basra. 10.00 
5« Fresh, 10X0 The Adventures of 
Slick Boauty. 11.00 Morning Worship. 
12. OQ Wockind World. 1.00 pm Police 
S. 1,15 The Smurfs. 1X0 Link. 2X0 
LWT Kawg Haadima*. fohowad by 
Reve’stion*. 2X0 '* The Hmuenburg-" 
sterling Goorge C. Scon and Anna 
Bancroft. 

4X0 Suoargran. 5X0 Show Me, 5X0 
Htrt To Hart. 6X0 Newa. 6.40 Highway, 


7.16 Catch phrase. 7X5 Live from tha 
PiMadium, 6X6 New*. 9X0 “ Escape 
From Soblbor.:’ 11.45 LWT News Head- 
line! followed by Cutter to Houston. 
CHANNEL 4 

9XS am Sunday Eaat. followed by 
Daawmin. 10.00 The World This 
Week. 11.00 Suparohampe. 11X0 
Wo real Gummidge. 12.00 Natwerfc 7. 

2.00 Tha Pocket Money -Programme. 
2X0 " A Song To Ramember," starring 
Cornel Wilde, with Paul Muni, Marie 
O baron end Nine Foch. 4X6 Early 
Musical Instruments. 

6,15 News Summary, followed by 
The Bus i net* Programme. 6X0 Swim- 
ming; The Fim European Community 
Championships. 7.00 Che Flange to 
Sport. 7.16 The World at War. 8.15 
Dance on 4; Pina Bausch and the 
Donee Theatre of Wuppertal. 9.10 Whan 
Reason Sleeps: Peer of the Dark. 110.10 
" Stales 17," earring William Holdan. 

S4C WALK 

9.0 am Hafoc. 10.00 The World This 
Week. 11X0 Superehampa. 11X0 
Woreal Gummidgs. 12X0 Natwerfc 7. 

12.00 pm Featura Film: “They Were 
Sisters.” 4.16 A Car For Africa. 5.15 
The Business Pregramme. 0X0 Swim- 
mirg. 7.0 Challenge To Sport. 7 30 
Newyddiort. 

7X0 Cals Am Gin. 8X0 Pobol Y 
Cwm* 8X0 Dechrau Canu. Dedirau 
Canmoi. 9.00 Plu Chwithlg. 9X0 
Dyddiau Dyn. 10J25 Feature Rim: ’* The 
Hot Rack " starring Robert Radford 
and George Segal. 

IBA Region* a* London axvcept at tha 
loUawlng times: — 

ANGLIA 

BXS am Cartoon Tima. 1X0 pm Any- 
thing Goes- US Waatter Trends. 1X0 
Farming Diary. 1.46 Rock of U» 
Savanuas. 12-20 am He la Riaen. 


BORDER 

9X5 am Border Diary. 1.00 per Farm- 
ing Outlook. 1 JO Link. 5X0 The FaU 
Guy. 11.46 Perspective. 

CENTRAL 

' 9X5 am Max Tha 2000 Year Old 
Mouse. 1X0 pm Link. 1X0 Hera And 
Now. 5X0 Clouoltie’a Golden Old! ax. 
6X0 TV Censored Bloopers. 11X6 
Prisoner Cell Block H. VLM am The 
Jci+I Movie: " The Andromeda 

Strain ” sterTbig James Olson- and 
Arthur HIIL 2X0 Central Newa Close- 
dawn followed fay CemraJ JabSnder H7. 

CHANNEL 

5XS am Today's Waaihar. 9X8 start- 
ing Point. 1X0 pm Lee Franca la Char- 
Von. 1X0 Enterprise South. 5X0 
Searaerow anti Mrs King. 9X5 Channel 
Nawa Headline*. 11X8 Portrait of * 
Legend. 

GRAMPIAN 

9X5 era Cartoon. 11.00 Recollection* 
— Katie Boyle. 11X0 A Full Life— John 
Julius Norwich, 1X9 pm Farming Out- 
look. 1X0. Sixth Sana*. 2X0 Highway 
To Heaven. 3X0 Baitsen. 4X0 Show Me. 
6X0 Scots port. 6X0 DM’rant Strokes. 
HAS living And Growing For AduRa. 

12.15 am Reflections. 

GRANADA 

9X5 nm Crystal Time and A Ratal r. 
1X0 pm Members Only. 1X5 Aap Kaa 
Hsb. 1.10 An Invitation to Remember. 
1X0 This Is Your Right. 5.00 The 
Love Boat. 0X0 SwaatheiRi. 11.45 
Special Squad. 

HTV 

9X6 *m Max tha 2.00Q-y*sr-old 
Mouse. 1.00 pm Farming Wales, 
followed by Weather for Farmer*. 5X0 
Mary. 5X0 Crazy like a Fox. SJ8 
HTV New*. 11-45 Dining In Franca. 


HTV Wa l e*— An HTV West except— 
SXO-5XO pm Fit For The FsmHy- 

SCOTTSH 

9X5 am Peter'* Adventure*. 11.00 
Sunday Documenary. 11X0 Farming 
Outlook. 1X0 pm The Glen Miduel 
Cavalcade. 2-90 The Two Edged Sword. 
2X0 Feature FUra: "Planet, of the 

Apes.” starring Charlton Heaton end 
Roddy MeOowmL EXO Scotsport. 8X0 
Show Me. VIM Late CalL 11. » Show 
Exbresa. 

TSW 

9X9 am Look and 5oe. 1X0 pm The 
South West Week, 1X0 Farming News. 
2X0 The Sunday Matinee: " Opecatbm 
Amsterdam,'* starring Pater Fmcfa. 4X0 
Gsitian* For AX 8X0 Supergrin. 6X0 
Orirrem Stroke*. 0X0 Show Ms. 6X5 
TSW Nawa. 11.45 The OinsJdora. 
12X0 em Postscript Postbag. 

TYS 

9XS am Employment Action) 1X0 pm 
Agenda. 1X0 Enterprise South. EXO 
Searaerow and Mrs King. 9X6 TVS 
New*. 11 .48 Herb Alpsrt — Portrait of a 
Leg and. 12.15 em Company. 

TYNE TEES 

92S sun Hallo Sunday. 1X0 pm 
Fanning Outlook. 1X0 Hally Cross 
(Shall Oiln British Open). 8X0 
Northern Life— Sunday Edition. EXO 
Menu Carlo Chous Festival. 11X6 
Celebration (Andrew and PMh Gloss 
Engraver*) 12.15 em Epilogue. 

ULSTER 

9X5 am Cartoon Thee. 12X8 pm 
Lunch thus New*. 1.00 Link, 1XQ 
Farming Ulster. -1XB Farming Weather.' 
5 Jo Sing Out. 6X0 the Duck Factory, 
6X8 Ulster Newa. 8X7 Ulster News. 
11X8 Sport* Results. 11X0 Chalk and 
Talk— An Education Forum. 12X0 em 
New* at Bedtime. 


YORKSHIRE 

9X5 em Cartoon Time. 1.00 pm 
Link. 1X5 Farming Diary. 8X0 Hart 
■to Hart 6X0 -Smetana it*. 11X6 .The 
SP« . ’K.* am Five Minute*. 

UJO Jobflnder. 

Stereo on VHF 
BBC RADIO 2 . 

7X0 am Roger Royie aaya “ Good 
Moroing Sunday." 9XS Melodies For 
You. 11.00 Oumond Carringtoo vritb 
" Your Radio 2 All-time G rents. - 
2X0 pm Stuart HsK's . Sunday Soon 
(Madiom Whya omy). iSo^CbSiS 
Cbaater whh your Sunday Soapbox. " 
7J 5J a J pmeants "Clovwit 

and Boffbow." 8X0 Sunday Half-hour. 
SXO Your Hundred Beat Tunes, RMIO 
Son** from tha Shown. 10X0 Jan 
«f J»**« Including 
after Midnight the John Hotter Qutam 
end the loins. >1X0- am Stave Madden 
Bfiaante ** Nightride." 2X04X0 A 
time Night Muetc. , 

BBC RADIO 3 

7X0 am News. 7X6 WiRwra Bock- 
haua. BXO. World Ssrvfc* Newa.! a.W 
Mualra Antique Cologna. 8X0 News. 

9.06 Ycur Concert Choica. lOXOMuiie 
Weakly. 11.1* Weber antf Schumann 
song recital , by Paw Schrefer. 12X0 
English Chamber Oieheatm directed by 
Vladimir, Aahkenaty. (pteno): Strauss 
(Metamorphosan). Mozart (Piano Con- 
“"O No. 17); (1.00 pm Interval Read' 
mg) 1.10 Dvorak (Seronada Op 22). 
“M Badu Music for the Third Sunday 
After Eeeter, 2X0 Untiuy String 
Quarnt, part 1; Haydn (Oo SO No. -8). 

■■ -flterfli A Musical 

Frieed. 3X0 Lindaay Quartet ban 2; 
Chertrblni (Quartet No. B). 4X0 Besi- 
hoveo: Plano Sonata m A flet-Op lio. 
4X0 BBC Philharmonic . Orchestra; 


Vaughan WHltenM (Overture: The 

Uoyd (Symphony No. 7). 
5X0 The Little Platoon— Tha Long 
Snuggle far the Falkland*. 8.15 Stem- 
date Bonnatt and Haydn. 7.lS From ■ 
H«m* » S an dove r. 7.46 
Verdi'* opera cung In 
•a-® h ■ recording of the Welsh 
Pfoduwion with J*lfiey 
in . “Ha rote, conducted by 
Armstrong. (A almulunaous 
breadeeat with BBC2.) 10.15 Romantic 
iw. J®- 4 ® Tha Voice of the 

wSKf.i-fy** 1 . Andrew* explores the 
Maurlcal value of oral taatlmony. 

PIpiw redial by Jean- 
CbHard, 11X7-12.00 Newa 

BBC RADIO 4 

7^ Q rv N r"‘ ™ Pepere- 

F * nn ’ 7X0 Sunday, 
iJ^? n 3 7 -S« Weather. TrevaU 9.00 
ffiPS *3® Sunday Papers. 8X0 The 
t2!Ti* G “d CauB*. 8X5 Weather, 
SSL* , N *wa. 9.10 Sunday 

Allm!^ r- 9 '! 8 hrom America by 

Morning Servloa. 

ill! o?t A . r ^* lf * (Oranlbve edition). 

11.15 Pick of tn. WMk (S) 12-M 

12.66 WMther. 1.00 
nET- 1 r artd Weekend. ■ iXS SMp- 

4.00 New*: Gardensra' 
480 Lord of tha Rings 
i?-'- *■30 Tha Radio Programme. 4.00 

^^. d eXssr B,ma ' 4a ° TO - R « no 

r Down Your Way. 

MB Shipping forecast. 6X5 Weather. 
Ho.Ei' N * w >- MS Australia 

BpmU of the Earth. 7.00 
The Robe IS>. 8X0 Bookshelf. 8X0 
The &tr. Tbo tight.. Tha Rama (8). 
“XO. News: A Musical Evening with 
unna Scans. 9X6 Waataar; Travel. 

W‘15 The Sunday Feature 
(»)• 11X0 Seeds of ftlta- 11-18 In 
Committee. 12.flG-i2.is am New*. 



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